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This is a Bill, not an Act. For current law, see the Acts databases.


GLADSTONE POWER STATION AGREEMENT BILL 1993

        Queensland




   GLADSTONE POWER
STATION AGREEMENT BILL
          1993

 


 

Queensland GLADSTONE POWER STATION AGREEMENT BILL 1993 TABLE OF PROVISIONS Section Page PART 1--PRELIMINARY 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 PART 2--STATE AGREEMENT 3 Minister may make agreement substantially in form of agreement . . . . . . 5 4 State agreement has force of law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 Amendment of State agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 Amendment of Schedule 2 to State agreement . . . . . . . . . . . . . . . . . . . . . . . 6 7 Enforcement of State agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 PART 3--STATE AND OTHER AGREEMENTS 8 Application of Part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 9 Arrangements for making agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 10 Performance of State agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 11 Commission authorised to sell Gladstone Power Station . . . . . . . . . . . . . . . 7 12 State bodies authorised to act under transaction documents . . . . . . . . . . . . 7 PART 4--LICENCE 13 Issue of licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 14 Amendment of licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 15 Revocation of licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 16 Termination of licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 17 Assignment, mortgage or charge of licence . . . . . . . . . . . . . . . . . . . . . . . . . 8 18 Receiving and delivery arrangements authorised . . . . . . . . . . . . . . . . . . . . . 9 19 Commission must not fix prices for supply under licence . . . . . . . . . . . . . . 9

 


 

2 Gladstone Power Station Agreement PART 5--AMENDMENT OF ELECTRICITY ACT 20 Amended Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 21 Amendment of s.6 (Interpretation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 22 Replacement of s.353 (Superannuation scheme) . . . . . . . . . . . . . . . . . . . . . 10 353 Superannuation scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 23 Amendment of s.354 (Superannuation Board) . . . . . . . . . . . . . . . . . . . . . . . . 11 24 Amendment of s.377 (Contribution to the Scheme) . . . . . . . . . . . . . . . . . . . 11 PART 6--MISCELLANEOUS 25 Unimproved value of power station land . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 26 Certificate of employees' rights at completion of sale of Gladstone Power Station . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 27 Employees' superannuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 28 Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 29 Application of s.36D of the Electricity Act . . . . . . . . . . . . . . . . . . . . . . . . . . 14 30 Trade Practices Act exceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 31 Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . . 16 STATE AGREEMENT

 


 

1993 A BILL FOR An Act authorising the making of an agreement about the sale of the Gladstone Power Station, and for related purposes

 


 

4 Gladstone Power Station Agreement The Parliament of Queensland enacts-- 1 PART 1--PRELIMINARY 2 title 3 Short This Act may be cited as the Gladstone Power Station Agreement 4 Clause1. Act 1993. 5 6 Definitions In this Act-- 7 Clause2. "Commission" has the meaning given by the Electricity Act; 8 "Electricity Act" means the Electricity Act 1976; 9 "Gladstone Power Station" has the meaning given in the State agreement; 10 "GPS licensee" has the meaning given in the State agreement; 11 "Land Act" means the Land Act 1962; 12 "licence" means the licence issued by the Minister for Energy under the 13 State agreement; 14 "Minister for Energy" means the Minister responsible for the 15 administration of the Electricity Act; 16 "operator" has the meaning given in the State agreement; 17 "participants" has the meaning given in the State agreement; 18 "Power Station Sale Agreement" has the meaning given in the State 19 agreement; 20 "receiving and delivery arrangement" means an arrangement between 21 each of the participants and the Commission under which electricity 22 is-- 23 (a) received by the Commission from each of the participants; and 24 (b) delivered by the Commission to customers of each of the 25

 


 

5 Gladstone Power Station Agreement participants; 1 "smelter" has the meaning given in the State agreement; 2 "State agreement" means the agreement made under section 3, and the 3 agreement as amended by a further agreement under section 5 or 6; 4 "State body" has the meaning given in the State agreement; 5 "transaction document" has the meaning given in the State agreement. 6 PART 2--STATE AGREEMENT 7 may make agreement substantially in form of agreement 8 Minister The Minister is authorised to make, for the State, an agreement 9 Clause3.(1) substantially in the form of the agreement set out in the Schedule. 10 (2) The Minister must notify, by Gazette notice-- 11 (a) the names of the parties to the agreement; and 12 (b) the day of the making of the agreement. 13 (3) The agreement is not effective unless it is made by-- 14 (a) 31 December 1993; or 15 (b) if a later day is prescribed by regulation-- the later day. 16 (4) A regulation made after 31 December 1993 may prescribe a later day. 17 agreement has force of law 18 State Clause4.(1) The State agreement has effect as if it were part of this Act. 19 (2) If the State agreement is inconsistent with an Act, the State agreement 20 prevails over the Act to the extent of the inconsistency. 21 (3) Nothing in this Act, the State agreement or a transaction document 22 restricts the Parliament in making laws affecting the rights or obligations of 23 any party under the State agreement or a transaction document. 24

 


 

6 Gladstone Power Station Agreement of State agreement 1 Amendment The State agreement may be amended by a further agreement 2 Clause5.(1) between the Minister and the other parties to the State agreement. 3 (2) The further agreement is made by the Minister for the State. 4 (3) The Minister may make a further agreement only if the proposed 5 further agreement has been approved by regulation. 6 (4) The Minister must notify the day of the making of the further 7 agreement by Gazette notice. 8 of Schedule 2 to State agreement 9 Amendment Clause6.(1) Schedule 2 to the State agreement may be amended by a further 10 agreement between the chief executive of the department principally 11 administering environmental planning and the other parties to the State 12 agreement. 13 (2) The further agreement is made by the chief executive for the State. 14 (3) The chief executive may make a further agreement only if the 15 proposed further agreement has been approved by regulation. 16 (4) The chief executive must notify the day of the making of the further 17 agreement by Gazette notice. 18 of State agreement 19 Enforcement Clause7.(1) The State agreement may be enforced only by, or for, a party to 20 the State agreement or a successor or permitted assign of a party. 21 (2) Subsection (1)-- 22 (a) applies subject to section 55 (Contracts for the benefit of third 23 parties) of the Property Law Act 1974; and 24 (b) does not apply to the enforcement of a law that applies under, or 25 is amended by, the State agreement. 26

 


 

7 Gladstone Power Station Agreement ART 3--STATE AND OTHER AGREEMENTS 1 P of Part 2 Application Clause8. This Part applies despite any other Act. 3 for making agreements 4 Arrangements The Minister may direct State instrumentalities (including local 5 Clause9. authorities) and all other entities of the State to make arrangements about the 6 making of the State agreement and associated agreements to facilitate the 7 timely making of the agreements. 8 of State agreement 9 Performance The State, Ministers, State instrumentalities (including local 10 Clause10. authorities) and all other entities of the State are authorised and required to 11 do all things necessary or convenient to perform and give effect to-- 12 (a) directions by the Minister under section 9; and 13 (b) the State agreement. 14 authorised to sell Gladstone Power Station 15 Commission The Commission-- 16 Clause11. (a) is authorised to make the Power Station Sale Agreement; and 17 (b) may do all things necessary or convenient to enable it to perform 18 its obligations and exercise its entitlements under the agreement. 19 bodies authorised to act under transaction documents 20 State A State body mentioned as a party to an agreement that is a 21 Clause12. transaction document-- 22 (a) is authorised to make the agreement; and 23 (b) may do all things necessary or convenient to enable it to perform 24 its obligations and exercise its entitlements under the agreement. 25

 


 

8 Gladstone Power Station Agreement ART 4--LICENCE 1 P of licence 2 Issue The Minister for Energy must issue a licence to the GPS 3 Clause13.(1) licensee as required by the State agreement. 4 (2) The licence is taken to be a licence issued under section 138 of the 5 Electricity Act. 6 (3) Sections 138(5) and (6), 139 to 146 and 398 of the Electricity Act do 7 not apply to the licence or the issuing of the licence. 8 (4) Sections 14 to 17 are taken to be provisions of the Electricity Act. 9 of licence 10 Amendment The licence may be amended by the Minister for Energy if 11 Clause14.(1) each of the participants agrees. 12 (2) The Minister for Energy must notify full details of an amendment of 13 the licence by Gazette notice. 14 of licence 15 Revocation Clause15.(1) The Minister for Energy may revoke the licence at any time by 16 written notice to each of the participants. 17 (2) Subsection (1) applies only if an event specified in the licence as a 18 ground for revocation of the licence happens. 19 of licence 20 Termination The licence is terminated if an event specified in the licence as 21 Clause16. causing termination of the licence happens. 22 mortgage or charge of licence 23 Assignment, The licence, or an interest in the licence, may be assigned, 24 Clause17. mortgaged or charged on the terms specified in the licence. 25

 


 

9 Gladstone Power Station Agreement and delivery arrangements authorised 1 Receiving The Commission is authorised to undertake receiving and 2 Clause18.(1) delivery arrangements while the licence is in force. 3 (2) When the Commission undertakes the receiving and delivery 4 arrangements, it is the doing of a thing the Commission is required to do 5 under the Electricity Act. 6 must not fix prices for supply under licence 7 Commission The Commission must not fix or control prices of, or methods 8 Clause19.(1) of charging for, electricity supplied under the licence. 9 (2) Subsection (1) applies despite the Electricity Act. 10 (3) Subsection (1) does not prevent the Commission from-- 11 (a) agreeing with each of the participants or another person on prices 12 or methods of charging; or 13 (b) charging for its services under receiving and delivery 14 arrangements. 15 PART 5--AMENDMENT OF ELECTRICITY ACT 16 Act 17 Amended Clause20. The Electricity Act is amended as set out in this Part. 18 of s.6 (Interpretation) 19 Amendment Section 6-- 20 Clause21. insert-- 21 ` "Scheme" means the Queensland Electricity Supply Industry Employees' 22 Superannuation Scheme established under section 353; 23 "Superannuation Board" means the Queensland Electricity Supply 24 Industry Superannuation Board established under section 354;'. 25

 


 

10 Gladstone Power Station Agreement of s.353 (Superannuation scheme) 1 Replacement Section 353-- 2 Clause22. omit, insert-- 3 scheme 4 `Superannuation `353.(1) The Queensland Electricity Supply Industry Employees' 5 Superannuation Scheme established under this Act on 1 July 1977 is 6 continued in existence. 7 `(2) The purpose of the Scheme is to provide superannuation benefits 8 to-- 9 (a) persons employed in the electricity supply industry and their 10 dependants; and 11 (b) other electricity employees and their dependants. 12 `(3) Regulations may be made to amend the Articles of the Scheme 13 about any of the following subjects-- 14 (a) the terms on which an employer may become, and continue to be, 15 a participating employer; 16 (b) the effect on the Scheme, the members of the Scheme and 17 benefits under the Scheme of the change of status of a 18 participating employer; 19 (c) the effect on the Scheme, the members of the Scheme and 20 benefits under the Scheme of the reduction, suspension or 21 termination of contributions by a participating employer; 22 (d) a participating employer ceasing (of its own right or by action by 23 the Superannuation Board) to be a participating employer and the 24 resulting effect on the Scheme and its members (including 25 cessation of membership) and benefits under the Scheme; 26 (e) provisions that may be necessary or convenient to assist the 27 inclusion of electricity employees as members of the Scheme. 28 `(4) In this section-- 29 "electricity employees" means employees, contractors and non-executive 30 directors of a participating employer who the participating employer 31 has decided are to be eligible for membership in the Scheme; 32

 


 

11 Gladstone Power Station Agreement "participating employer" means an employer who-- 1 (a) is prescribed by regulation to be a participating employer; and 2 (b) agrees with the Superannuation Board to be a participating 3 employer on the terms agreed between the Board and the 4 employer; and 5 (c) is approved by the Commission to be a participating employer. 6 `(5) An employer ceases to be a participating employer if-- 7 (a) the agreement mentioned in subsection (4) is withdrawn; or 8 (b) the approval mentioned in subsection (4) is revoked. 9 `(6) The making of an amendment of the agreement mentioned in 10 subsection (4) is not a withdrawal of the agreement.'. 11 of s.354 (Superannuation Board) 12 Amendment Section 354-- 13 Clause23. omit `, hereinafter referred to as "the Superannuation Board" '. 14 of s.377 (Contribution to the Scheme) 15 Amendment Section 377-- 16 Clause24. insert-- 17 `(5) In subsection (3)-- 18 "employee" includes an electricity employee under section 353 who 19 contributes to the Scheme; 20 "employer" includes a participating employer under section 353.'. 21

 


 

12 Gladstone Power Station Agreement ART 6--MISCELLANEOUS 1 P value of power station land 2 Unimproved A determination under section 207D of the Land Act of the 3 Clause25.(1) unimproved value of the power station land must be $1. 4 (2) The purchasing price to be specified in the written offer to the 5 Commission under section 207C(a) or 207G(1)(a) of the Land Act must be 6 $1. 7 (3) If the application is made before this Act commences, this section is 8 taken to have commenced immediately before the application was made. 9 (4) In this section-- 10 "application" means the application made by the Commission under 11 section 207(1) of the Land Act to purchase an estate in fee simple in 12 the power station land; 13 "power station land" means the part of the land contained in Special Lease 14 No. 19/42584 for which the Commission makes the application. 15 of employees' rights at completion of sale of Gladstone 16 Certificate Power Station 17 Within 30 days after the completion of the sale of the 18 Clause26.(1) Gladstone Power Station, the Commission must give a written certificate to 19 each person who-- 20 (a) immediately before the completion was an employee of the 21 Commission at the Gladstone Power Station; and 22 (b) immediately after the completion becomes an employee, other 23 than of the Commission, at the Gladstone Power Station. 24 (2) The certificate must state-- 25 (a) the leave entitlements that had accrued to the person immediately 26 before the completion as an employee of the Commission less 27 leave taken (whether as leave or by way of payment instead of the 28 leave); and 29 (b) the day from which the person's service has been regarded as 30

 


 

13 Gladstone Power Station Agreement continuous service as a person employed in the electricity supply 1 industry; and 2 (c) the person's salary classification immediately before the 3 completion. 4 (3) In subsection (2)-- 5 "leave" includes annual leave and long service leave (or service that would 6 be counted towards long service leave). 7 (4) A person to whom a certificate under subsection (1) should have 8 been given may ask-- 9 (a) if a certificate has not been given--that a certificate be given; or 10 (b) if a certificate has been given and the person claims that the 11 information contained in the certificate is inaccurate--that an 12 accurate certificate be given. 13 (5) The person must make the request under subsection (4) within 14 30 days of-- 15 (a) the giving of the certificate; or 16 (b) the completion of the sale; 17 whichever is the later. 18 (6) The Commission must comply with the request within 30 days of 19 receiving it. 20 superannuation 21 Employees' Clause27. Regulations may be made under the Electricity Act amending the 22 effect of the Articles of the Queensland Electricity Supply Industry 23 Employees' Superannuation Scheme and the Rules for the Queensland 24 Electricity Industry Employer-funded Accumulations Superannuation Fund 25 with respect to the benefits and entitlements and consequent functions of 26 persons who-- 27 (a) immediately before the completion of the sale of the Gladstone 28 Power Station under the Power Station Sale Agreement, are 29 employees of the Commission; and 30

 


 

14 Gladstone Power Station Agreement (b) on the completion, become employees, other than of the 1 Commission, at the Gladstone Power Station. 2 3 Records The records that the Power Station Sale Agreement requires the 4 Clause28. Commission to deliver to the participants are not public records under the 5 Libraries and Archives Act 1988. 6 of s.36D of the Electricity Act 7 Application To remove any doubt, the Commission is not authorised under 8 Clause29. section 36D of the Electricity Act to formulate policies that affect 9 employees of the participants or of the operator. 10 Practices Act exceptions 11 Trade Clause30. The Governor in Council may, if it is necessary or desirable to do 12 so to avoid contravention of a provision of Part IV of the Trade Practices 13 Act 1974 (Cwlth), by regulation specifically authorise or approve-- 14 (a) the establishment of a joint venture for the acquisition or 15 operation of the Gladstone Power Station; and 16 (b) the acquisition of the Gladstone Power Station by the participants; 17 and 18 (c) the making of and giving effect to a transaction document; and 19 (d) the making of and giving effect to an agreement for the supply or 20 acquisition of goods or services (including electricity, coal and rail 21 freight) by or to the operator or a participant about the operation 22 of the Gladstone Power Station; and 23 (e) the giving effect to existing agreements about the smelter and its 24 operation; and 25 (f) the making of and giving effect to arrangements about the 26 operation or expansion of the smelter. 27

 


 

15 Gladstone Power Station Agreement 1 Regulations The Governor in Council may make regulations for the purposes 2 Clause31. of this Act (including the State agreement). 3 4

 


 

16 Gladstone Power Station Agreement CHEDULE 1 ¡S STATE AGREEMENT 2 section 3 3 THIS AGREEMENT is made the day of 1993. 4 BETWEEN 5 I. The Honourable Wayne Keith Goss, the Premier of Queensland and 6 Minister for Economic and Trade Development for Queensland, for 7 and on behalf of the State of Queensland ("the State"); 8 II. # (the "Participants" and each a "Participant"); and 9 III. # (the "Operator"). 10 RECITALS-- 11 A. The Participants are negotiating to purchase from the Queensland 12 Electricity Commission the Gladstone Power Station and are 13 negotiating a number of agreements relating to or connected with the 14 acquisition and operation of the Gladstone Power Station. 15 B. The Participants propose to purchase the Gladstone Power Station to 16 facilitate the supply of power to the Boyne Island aluminium smelter, 17 which it is proposed, once expanded, will have an annual production 18 capacity of approximately 460 000 tonnes of aluminium. 19 C. The Participants have requested the State to provide certain undertakings 20 and assurances relating to the acquisition by the Participants and future 21 operation by the Participants and the Operator of the Gladstone Power 22 Station. 23 D. Recognising the benefits to the State from the involvement of the 24 Participants in the acquisition and operation of the Gladstone Power 25 Station, the State has agreed to provide those undertakings and 26 assurances in accordance with and subject to the terms of this 27 Agreement. 28

 


 

17 Gladstone Power Station Agreement SCHEDULE (continued) IT IS AGREED-- 1 PART I--PRELIMINARY 2 1. Definitions 3 In this Agreement, unless the context otherwise requires or indicates-- 4 "Acquire" has the same meaning in relation to an interest in a corporation 5 as it has under subsection 56FA(1) of the Stamp Act as if the 6 prescribed provisions (as defined in section 56F of the Stamp Act) 7 applied to that corporation and "Acquisition" has a corresponding 8 meaning; 9 "Acquirer" means a person who has made an Acquisition; 10 "Agreement Act" means the Gladstone Power Station Agreement Act 11 1993; 12 "ash" means ash produced from the burning of coal in the operation of the 13 GPS; 14 "Ash Management Agreement" means the agreement to be entered into 15 between each of the Participants, the Gladstone Port Authority, the 16 Gladstone City Council, the Minister for Industrial Development of 17 Queensland, Queensland Railways and The Director-General, 18 Department of Transport for the management of ash disposal matters 19 over the life of the GPS from the Date of Transfer; 20 "BSL" means Boyne Smelters Limited (A.C.N. 010 061 935); 21 "Business Day" means any day other than a Saturday, Sunday or bank or 22 public holiday; 23 "Callide Assignment Deed" means the deed that may be entered into 24 between QEC, each of the Participants and the Callide Co-Venture 25 under which QEC will assign to each of the Participants part of its 26 right, title and interest in the Callide Coal Supply Agreement with the 27 consent of the Callide Co-Venture; 28 "Callide Coal Supply Agreement" means the agreements dated 29

 


 

18 Gladstone Power Station Agreement SCHEDULE (continued) 20 August 1987 and 12 October 1989 between QEC of the one part 1 and the Callide Co-Venture of the other part for the supply and sale of 2 coal by the Callide Co-Venture to QEC and any agreement or 3 agreements in substitution or replacement of them; 4 "Callide Co-Venture" means The Shell Company of Australia Limited 5 (A.C.N. 004 610 459) and Australian Mutual Provident Society 6 (A.R.B.N. 008 387 371); 7 "Callide On-Sale Contract" means the agreement that may be entered 8 into between QEC and each of the Participants for the sale of coal by 9 QEC to each of the Participants from coal to be purchased by QEC 10 from the Callide Co-Venture under the Callide Coal Supply 11 Agreement; 12 "Capacity Purchase Agreement" means an agreement to be entered into 13 between QEC and each Participant separately under which the 14 Participant will maintain a capacity to supply electricity from the GPS 15 to QEC, and QEC will pay to the Participant a capacity charge 16 referable to the capacity to supply maintained by the Participant; 17 "Comalco" means Comalco Limited (A.C.N. 004 502 694); 18 "Contaminated Land Act" means the Contaminated Land Act 1991 (as 19 amended); 20 "Curragh Coal Supply Agreement" means the agreement dated 21 30 January 1981 (as amended) between QEC of the one part and 22 Anaconda Australia Inc., ACI Operations Pty Ltd, ACI Coal Limited, 23 R.W. Miller & Company Pty Limited and Mitsui Coal Development 24 (Australia) Pty Ltd of the other part for the supply and sale of coal to 25 QEC; 26 "Curragh On-Sale Contract" means the agreement to be entered into 27 between QEC and each of the Participants for the sale of coal by QEC 28 to each of the Participants from coal purchased by QEC under the 29 Curragh Coal Supply Agreement; 30 "Date of Transfer" means the date of completion of the sale by QEC to 31 the Participants of the GPS under the Power Station Sale Agreement; 32 "Disponor" means a person who has made a Disposal; 33

 


 

19 Gladstone Power Station Agreement SCHEDULE (continued) "Dispose" means, in relation to any property, assign, transfer, convey, 1 settle, gift, deal with, declare a trust in respect of or otherwise dispose 2 of the property and "Disposal" has a corresponding meaning; 3 "Electricity Act" means the Electricity Act 1976 (as amended); 4 "Environment" includes-- 5 (a) ecosystems in their constituent parts including people in the 6 community; and 7 (b) all natural and physical resources; and 8 (c) those qualities and characteristics of locations, places and areas, 9 however large or small, that contribute to their biological diversity 10 and integrity, intrinsic or attributed scientific value or interest, 11 amenity, harmony and sense of community; and 12 (d) the social, economic, aesthetic and cultural conditions that affect 13 the matters referred to in paragraphs (a), (b) and (c) or that are 14 affected by those matters; 15 "Environmental Legislation" means an Act of the State that has as its 16 object, purpose or effect or one of its objects, purposes or effects any 1 17 or more of-- 18 (a) the protection of the Environment from harm or degradation; or 19 (b) the prevention, control, abatement or investigation of Pollution or 20 its effects; or 21 (c) the regulation of waste, waste generation or waste disposal; or 22 (d) the regulation of discharges to the Environment; or 23 (e) the prevention, control, abatement, remediation or mitigation of 24 contamination or Pollution; 25 "First Power Agreement" means the agreement dated 20 June 1972 as 26 amended to 12 August 1992 between QEC, formerly known as the 27 State Electricity Commission of Queensland, the State and Comalco 28 for the supply of electricity to the Smelter; 29 "Five Year Bond Rate" means, on any day, the rate that is the assessed 30 secondary market yield, in respect of 5-year non-rebate 31

 


 

20 Gladstone Power Station Agreement SCHEDULE (continued) Commonwealth Treasury bonds, published by the Reserve Bank of 1 Australia in respect of the month in which the day falls; 2 "Gladstone City Council" means the Council of the City of Gladstone 3 constituted under the Local Government Act 1936 (as amended); 4 "Gladstone Power Station" and "GPS" mean the coal-fired electricity 5 generating facility and the associated combustion turbine located at 6 Gladstone, Queensland, together with all plant, equipment, 7 transformers, switch gear, protective devices, fuel handling and residue 8 disposal infrastructure, all real property, fixtures and other associated 9 property, both real and personal, owned, leased, controlled, operated or 10 managed in connection with, or necessary for the proper operation of, 11 the Gladstone Power Station; 12 "GPS Environmental Policy Schedule" means the Second Schedule to 13 this Agreement; 14 "GPS Licence" means the licence to supply electricity from the GPS the 15 form of which is set out in the First Schedule to this Agreement; 16 "GPS Licensee" means the person nominated by each Participant as its 17 nominee to whom the GPS Licence is to be issued in accordance with 18 this Agreement; 19 "GPS Site" means the following lands for so long as the Participants hold 20 an estate or interest in them-- 21 (a) the lands in which the Participants acquire an estate or interest 22 under the Power Station Sale Agreement; 23 (b) the lands adjacent to the GPS in which the Participants acquire an 24 estate or interest at or about the Date of Transfer for purposes 25 incidental to, or associated with, the operation of the GPS (but 26 excluding any lands in which the Participants acquire an estate or 27 interest under the Ash Management Agreement); 28 "Initial Participant" means a Participant which is an initial signatory to 29 this Agreement; 30 "Initial Transaction Documents" means those Transaction Documents 31 referred to in paragraphs (a) to (k) (inclusive) of the definition of 32 "Transaction Document"; 33

 


 

21 Gladstone Power Station Agreement SCHEDULE (continued) "Interconnection and Power Pooling Agreement" means the agreement 1 to be entered into between QEC and each of the Participants under 2 which-- 3 (a) the GPS will be taken to be interconnected with the System (as 4 defined in the agreement); and 5 (b) there will be Mutual Capacity Support (as defined in the 6 agreement) provided by or to QEC and/or each of the 7 Participants; and 8 (c) there will be a pooling of Energy (as defined in the agreement) 9 between QEC and each of the Participants; and 10 (d) there will be regulations providing for the integration of the GPS 11 into the System; and 12 (e) there will be charges payable by QEC to each of the Participants 13 and/or by each of the Participants to QEC; 14 "Inter Creditor Deed" means the deed to be entered into between (among 15 others) QEC, each of the Participants and the banks and financial 16 institutions that advance monies for the acquisition of the GPS; 17 "interest" in relation to a corporation has the same meaning as in 18 subsection 56FN(1) of the Stamp Act; 19 "Joint Venture" means the unincorporated joint venture formed or to be 20 formed by the Participants for purposes including the acquisition (as 21 tenants in common in undivided shares) of the GPS from QEC and 22 the operation and maintenance of the GPS; 23 "Local Authority" means the Gladstone City Council and any local 24 authority or joint local authority board constituted under the Local 25 Government Act 1936 (as amended) having jurisdiction in relation to 26 the Local Authority Area in which the GPS Site is situated; 27 "Local Authority Area" means the area over which a Local Authority has 28 jurisdiction including any place under the control of the Local 29 Authority outside the boundaries of the area; 30 "Long Term Investor" means a person or corporation, other than an Initial 31 Participant, who, in relation to the acquisition of an interest described 32

 


 

22 Gladstone Power Station Agreement SCHEDULE (continued) in Clause 18(e), executes and delivers to the State a statutory 1 declaration in a form satisfactory to the State declaring an intention to 2 hold the whole of the interest so acquired for a continuous period of at 3 least 7 years from the date of the acquisition in question; 4 "Minister" means the Minister of the Crown for the time being responsible 5 for the administration of the Agreement Act; 6 "Minister for Energy" means the Minister of the Crown for the time 7 being responsible for the administration of the Electricity Act; 8 "Operator" includes the successors and permitted assigns under this 9 Agreement of the Operator; 10 "Participant" includes the successors and permitted assigns under this 11 Agreement of a Participant; 12 "Participants Charge" means a charge in favour of QEC to be granted by 13 each Participant over its interest in certain of the Relevant Assets; 14 "Permit" includes a permit, licence, consent, approval, exemption, 15 permission or other authorisation; 16 "Planning Legislation" means legislation relating to the zoning or use of 17 land including, without limitation, the Local Government Act 1936 (as 18 amended) and the Local Government (Planning and Environment) Act 19 1990 (as amended); 20 "Planning Scheme" has the same meaning as defined in the Local 21 Government (Planning and Environment) Act 1990 (as amended); 22 "Pollution" means a discharge, emission or deposit of anything in any 23 state or combination of states, however caused, which brings about or 24 causes or may be reasonably expected to bring about or cause any 25 deterioration, degradation, harm or damage to the Environment so as 26 to create or be likely to create the following conditions-- 27 (a) a risk to the health of any person or conditions unsuitable for 28 occupation or any material use; 29 (b) a material degradation in the capacity to support life; 30 (c) a requirement to remediate or clean up to any extent; 31 "Power Station Sale Agreement" means the agreement to be entered into 32

 


 

23 Gladstone Power Station Agreement SCHEDULE (continued) between QEC and the Participants under which, among other things, 1 the GPS is to be purchased by the Participants from QEC; 2 "QEC" means the Queensland Electricity Commission together with its 3 successors and assigns; 4 "Queensland Railways" includes its successors and assigns; 5 "Rail Haulage Agreement" means the deed to be entered into between 6 Queensland Railways and each of the Participants under which 7 Queensland Railways will rail coal to the GPS and each of the 8 Participants will pay to Queensland Railways charges for rail haulage; 9 "Refurbishment and Testing Deed" means the deed between QEC and 10 Comalco dated 10 May 1993 for the refurbishment of the GPS and 11 includes any replacement deed contemplated by it; 12 "Refurbishment Works" means the works for the refurbishment of the 13 GPS that are the subject of or contemplated by the Refurbishment and 14 Testing Deed; 15 "related person" means, in relation to any corporation, a related body 16 corporate (as defined in the Corporations Law) of that corporation or 17 the trustee of a trust of which that corporation, or a related body 18 corporate of that corporation, is a beneficiary; 19 "Relevant Assets" means-- 20 (a) all of the assets and undertaking of the Joint Venture; and 21 (b) the interests and rights of Participants under this Agreement, the 22 GPS Licence and the Transaction Documents; and 23 (c) the interests and rights of Participants under any agreement 24 entered into by them for, or in connection with, the sale of their 25 respective shares of electricity generated at the GPS (or their 26 capacity to supply it); and 27 (d) if the Callide Assignment Deed is entered into, the interests and 28 rights of Participants under the Callide Coal Supply Agreement; 29 and 30 (e) the interests and rights of Participants under any other agreements 31 entered into by or on their behalf for purposes connected with the 32

 


 

24 Gladstone Power Station Agreement SCHEDULE (continued) Joint Venture or the GPS; 1 "Relevant Percentage" means-- 2 (a) in relation to the year commencing on the Date of Transfer, the 3 rate per cent a year that is the aggregate of the Five Year Bond 4 Rate on that date and 6% a year; and 5 (b) in relation to each subsequent year, the rate per cent a year that is 6 the aggregate of the Five Year Bond Rate on the first day of the 7 year and 6% a year; 8 "Seawater Usage Agreement" means the agreement to be entered into 9 between the Gladstone Port Authority and each of the Participants for 10 the use of seawater in connection with the operation of the GPS; 11 "Smelter" means the aluminium smelter located at Boyne Island owned by 12 BSL including, where the context so requires, the Third Potline; 13 "Smelter Expansion" means the construction and commissioning of the 14 Third Potline; 15 "Smelter Upgrade" means the improvements to be made to the existing 16 2 potlines of the Smelter to increase their annual production capacity to 17 approximately 260 000 tonnes of aluminium; 18 "Stamp Act" means the Stamp Act 1894 (as amended); 19 "State Body" means any one or more of QEC, Queensland Railways, 20 Gladstone Port Authority, Gladstone City Council, the Minister for 21 Industrial Development of Queensland and The Director-General, 22 Department of Transport each together with its successors and assigns; 23 "statutory body" means a body constituted by or under an Act of the State 24 for a public purpose; 25 "Third Potline" means the third potline having an annual production 26 capacity of approximately 200 000 tonnes of aluminium that, it is 27 anticipated, will be constructed at the Smelter; 28 "Transaction Document" means each of-- 29 (a) any Capacity Purchase Agreement; and 30 (b) the Interconnection and Power Pooling Agreement; and 31

 


 

25 Gladstone Power Station Agreement SCHEDULE (continued) (c) the Power Station Sale Agreement; and 1 (d) the Ash Management Agreement; and 2 (e) the Rail Haulage Agreement; and 3 (f) the Curragh On-Sale Contract; and 4 (g) the Seawater Usage Agreement; and 5 (h) the Refurbishment and Testing Deed; and 6 (i) the Inter Creditor Deed; and 7 (j) the Participants Charge; and 8 (k) the Callide Assignment Deed or the Callide On-Sale Contract, 9 whichever is entered into; and 10 (l) any permitted variations of any of the documents mentioned in 11 paragraphs (a) to (k). 12 2. Interpretation 13 In this Agreement, unless the context otherwise requires-- 14 (a) words importing the singular include the plural and vice versa; 15 and 16 (b) words importing any gender include the other gender; and 17 (c) references to persons include corporations, bodies corporate, 18 associations, statutory authorities and bodies politic; and 19 (d) references to a corporation that is a party to this Agreement 20 means and includes the corporation, its successors in title and 21 permitted assigns; and 22 (e) references to this or any other document include the document as 23 varied or replaced despite any change in the identity of the parties 24 to the document; and 25 (f) headings do not affect the construction or interpretation of this 26 Agreement; and 27 (g) references to a person which has ceased to exist or has 28

 


 

26 Gladstone Power Station Agreement SCHEDULE (continued) reconstituted, amalgamated, reconstructed or merged or the 1 functions of which have become exercisable by any other person 2 in its place are taken to refer to the person established or 3 constituted in its place or by which its functions have become 4 exercisable; and 5 (h) a reference to an Act or legislation includes any regulations, rules, 6 by-laws, ordinances and orders made under that Act or legislation 7 and a reference to an Act, legislation, regulation, rule, by-law, 8 ordinance or order includes an amendment, re-enactment, 9 variation or extension of it or statutory provision substituted for it; 10 and 11 (i) references to parts, recitals, clauses and schedules are references 12 to the Parts, Recitals, Clauses and Schedules of this Agreement 13 and references to this Agreement include its Recitals and 14 Schedules; and 15 (j) derivatives of defined words have a corresponding meaning. 16 3. Authority to enter into Agreement 17 The State acknowledges and confirms that approval has been given by 18 the Agreement Act for the Minister, for and on behalf of the State, to enter 19 into this Agreement. 20 4. Authority of the Minister 21 The Minister has authority to decide all matters on behalf of the State 22 relating to this Agreement unless specified in this Agreement to the 23 contrary. 24 5. Conditions precedent 25 (a) Part I and Part VI of this Agreement take effect on the date of this 26 Agreement. 27 (b) The remainder of this Agreement does not come into effect until 28 each of the Initial Transaction Documents, in a form acceptable to 29

 


 

27 Gladstone Power Station Agreement SCHEDULE (continued) the Minister, has been executed. 1 (c) If the condition precedent specified in paragraph (b) is not 2 completely fulfilled or waived within 14 days of the execution of 3 this Agreement, or by a later date agreed to by each party within 4 14 days of the execution of this Agreement, then this Agreement 5 may be terminated by the State giving written notice to the other 6 parties. 7 6. Minister's copies of Transaction Documents 8 Promptly after executing a Transaction Document the Participants will 9 ensure that an accurate copy of the Transaction Document is given to the 10 Minister. 11 7. Agreement to have force of law 12 The parties acknowledge that, under section 4 of the Agreement Act, on 13 this Agreement being entered into and the conditions precedent in Clause 5 14 being fulfilled, the provisions of this Agreement have effect as if the 15 Agreement were part of the Agreement Act. 16 PART II--OBLIGATIONS OF THE STATE 17 8. Electricity rationing orders 18 The Minister for Energy will not prohibit, restrict, control or regulate the 19 supply of electricity by QEC to the Smelter by an electricity rationing order 20 if the order would prevent QEC from complying with its obligations under 21 Clause 7 of the Interconnection and Power Pooling Agreement. 22

 


 

28 Gladstone Power Station Agreement SCHEDULE (continued) 9. Issue of GPS Licence 1 On the Date of Transfer, the Minister for Energy will issue the GPS 2 Licence to the GPS Licensee. 3 10. Credit support 4 (a) For the purpose of this Clause 10-- 5 (i) "Monetary Obligation" means an obligation to pay money 6 whether in debt or damages including damages for breach of 7 any non-monetary obligation; 8 (ii) "Power Agreements" means the Interconnection and 9 Power Pooling Agreement and each of the Capacity 10 Purchase Agreements; 11 (iii) "QEC" includes as the case may be-- 12 (A) an entity which becomes obliged to perform all or any 13 of the QEC Obligations; 14 (B) any assignee of all or any of the QEC Obligations; 15 (iv) "QEC Guarantor" means any entity which enters into a 16 guarantee in favour of each of the Participants to guarantee 17 the QEC Obligations, which guarantee-- 18 (A) is unconditional and, subject to paragraph (c), 19 irrevocable; and 20 (B) is expressed not to be discharged by the grant of any 21 time, waiver or indulgence, the liquidation, dissolution 22 or insolvency of any person, any variation to or 23 invalidity of any document or agreement or any other 24 event or circumstance which would or might operate to 25 release or discharge a surety; and 26 (C) excludes any obligation on the part of a Participant to 27 marshal or appropriate in favour of the guarantor any 28 other security or guarantee or other funds or assets to 29 which the Participant has a claim; and 30

 


 

29 Gladstone Power Station Agreement SCHEDULE (continued) (D) excludes the right of the guarantor to be subrogated to 1 or claim the benefit of any other security interest or 2 guarantee held by a Participant or to prove in the 3 liquidation of QEC in competition with a Participant; 4 and 5 (E) is reinstated upon any payment by or transaction 6 entered into with QEC being declared or conceded to be 7 void, voidable or otherwise capable of being set aside; 8 and 9 (F) contains such other provisions as would reasonably be 10 expected to be included in an unconditional guarantee; 11 (v) "QEC Obligations" means all of the Monetary Obligations 12 of QEC under the Power Agreements (including any 13 Monetary Obligation in respect of which QEC might be in 14 default and any other accrued or unsatisfied Monetary 15 Obligation of QEC); 16 (vi) "QEC Rating" means a credit rating of QEC in relation to 17 its domestic debt as determined by S & P Australian Ratings 18 on the basis that the rating specifically disregards any 19 implicit or explicit support for QEC by the State (if QEC is 20 a State instrumentality) other than any credit support given 21 by the State in order to restore the QEC Rating to an `A' 22 Rating in compliance with its undertaking in paragraph (b); 23 (vii) "QEC Guarantor Rating" means a credit rating of a QEC 24 Guarantor in relation to its domestic debt as determined by 25 S & P Australian Ratings on the basis that the rating 26 specifically disregards any implicit or explicit support for the 27 QEC Guarantor by the State (if the QEC Guarantor is a 28 State instrumentality) other than any credit support given by 29 the State in order to restore the QEC Guarantor Rating to an 30 `A' Rating in compliance with its undertaking in 31 paragraph (b); 32 (viii)"Rating" means a credit rating determined by S & P 33 Australian Ratings; 34

 


 

30 Gladstone Power Station Agreement SCHEDULE (continued) (ix) "Rating Period" means a period commencing on the Date 1 of Transfer and expiring on the first to occur of the 2 following events-- 3 (A) the date upon which the balance of debt outstanding in 4 respect of the initial project financing for the 5 Participants' acquisition of the GPS has been fully and 6 finally repaid, unless there is a refinancing which does 7 not increase the debt outstanding at the time of the 8 refinancing, in which case if that refinancing (or any 9 subsequent such refinancing in its place)-- 10 (a) has a term expiring no later than 15 years 11 from the Date of Transfer, the date on which 12 the debt outstanding in respect of the 13 refinancing is fully and finally repaid; or 14 (b) has a term expiring later than 15 years from 15 the Date of Transfer, the date which is 15 16 years from the Date of Transfer; 17 (B) the lawful termination by QEC or the discharge 18 (by performance, effluxion of time or otherwise) 19 of the Interconnection and Power Pooling 20 Agreement; 21 (C) 20 years from the Date of Transfer (unless at that 22 time the initial project financing or any subsequent 23 refinancing which does not increase the debt 24 outstanding at the time of the refinancing has not 25 been fully and finally repaid, substantially as a 26 result of a failure by QEC to perform the QEC 27 Obligations); 28 except that if on the occurrence of such event (other than an 29 event described in sub-paragraph (ix)(A) above) there are 30 accrued QEC Obligations, the Rating Period will be 31 extended until such accrued QEC Obligations have been 32 discharged; 33 (x) "S & P Australian Ratings" means Standard & Poor's 34

 


 

31 Gladstone Power Station Agreement SCHEDULE (continued) Australian Ratings Limited's rating service or if-- 1 (A) Standard & Poor's Australian Ratings Limited or its 2 successor or assignee ceases to rate QEC or any QEC 3 Guarantor, then the primary internationally recognised 4 credit rating agency that at that time rates the State at the 5 request of the State; or 6 (B) at any time there is no credit rating agency that rates the 7 State, then the credit rating agency of international 8 repute and standing nominated by QEC and consented 9 to by the Participants (which consent will not be 10 unreasonably withheld). 11 (b) If, during the Rating Period-- 12 (i) the QEC Rating is not equal to or above an `A' Rating or 13 there is no QEC Rating then, by not later than 90 days after 14 receipt by the State of written notice from a Participant of 15 that circumstance, the State will either-- 16 (A) restore the QEC Rating to an `A' Rating; or 17 (B) procure another entity having a Rating equal to or above 18 an `A' Rating to become the QEC Guarantor and 19 remain the QEC Guarantor until the QEC Rating is 20 restored to an `A' Rating; 21 (ii) the QEC Guarantor Rating is not equal to or above an `A' 22 Rating or there is no QEC Guarantor Rating then, by not 23 later than 90 days after receipt by the State of written notice 24 from a Participant of that circumstance, the State will 25 either-- 26 (A) restore the QEC Guarantor Rating to an `A' Rating; or 27 (B) procure another entity having a Rating equal to or above 28 an `A' Rating to become the QEC Guarantor and 29 remain the QEC Guarantor until the QEC Guarantor 30 Rating or the QEC Rating is restored to an `A' Rating; 31 (iii) QEC is dissolved or wound up, the State will procure 32 another entity having a Rating equal to or above an `A' 33

 


 

32 Gladstone Power Station Agreement SCHEDULE (continued) Rating to assume the QEC Obligations. 1 (c) Upon the QEC Rating or any QEC Guarantor Rating being 2 restored to an `A' Rating under paragraph (b), all other QEC 3 Guarantors (if any) will cease to be bound by any guarantees in 4 relation to the QEC Obligations. 5 (d) The sole obligations of the State under this Clause 10 are its 6 undertakings as set out in paragraph (b) and the undertakings of 7 the State under paragraph (b) do not impose any actual or 8 contingent liability on the State to perform or satisfy any of the 9 QEC Obligations. The obligation of the State in paragraph (b) 10 will apply despite the insolvency, dissolution or winding up of 11 QEC or a QEC Guarantor. 12 11. Non-Discrimination 13 (a) Subject to the exceptions specified in paragraphs (c), (d), (e) and 14 (f) of this Clause 11, the State will not, and will not authorise or 15 permit any instrumentality of the State or any body (including a 16 statutory body), authority (including a local authority), agency or 17 public officer of the State to, take any action or combination of 18 actions that is discriminatory to a material extent as between the 19 GPS or the rights, benefits or obligations of each of the 20 Participants in relation to the GPS and other operating coal-fired 21 power stations in the State which were operational at the Date of 22 Transfer or the rights, benefits or obligations of the proprietors of 23 those other coal-fired power stations. 24 (b) Without limitation, in determining whether the taking of any 25 action or combination of actions contravenes paragraph (a), the 26 effect of the action or combination of actions must be taken into 27 account, including-- 28 (i) whether the GPS or the rights, benefits or obligations of 29 each of the Participants in relation to the GPS is, are or 30 would be the only thing or things affected; and 31 (ii) whether in the same circumstances other currently operating 32 coal-fired power stations in the State which were operational 33

 


 

33 Gladstone Power Station Agreement SCHEDULE (continued) at the Date of Transfer or the rights, benefits or obligations 1 of the proprietors of those other coal-fired power stations are 2 or would be affected and, if so, the nature and extent of that 3 effect; and 4 (iii) whether, taken individually or in combination, some 5 elements of the action or combination of actions are 6 discriminatory and other elements are beneficial, in which 7 case the net effect of the action or combination of actions 8 will be the relevant effect for the purposes of this 9 paragraph (b). 10 (c) The exercise of a right conferred on a person by this Agreement, 11 the Agreement Act or a Transaction Document, or the 12 performance or satisfaction of any condition, obligation or 13 requirement imposed on a person thereunder, does not contravene 14 paragraph (a). 15 (d) Paragraph (a) does not prevent or restrict the State, any 16 instrumentality of the State or any body (including a statutory 17 body), authority (including a local authority), agency or public 18 officer of the State doing anything that is or involves-- 19 (i) a sale, lease or other disposal of all or part of any interest 20 in-- 21 (A) a power station; 22 (B) facilities associated with the generation by, or supply, 23 transmission or distribution of electricity from, a power 24 station; 25 on terms different to those contained in this Agreement or 26 any Transaction Document; or 27 (ii) the supply of products, by-products, materials or services 28 used or produced by, or through the operation of, a power 29 station on terms different to those contained in this 30 Agreement or any Transaction Document; or 31 (iii) the sale, purchase or supply of electricity from a power 32 station on terms different to those contained in this 33

 


 

34 Gladstone Power Station Agreement SCHEDULE (continued) Agreement or any Transaction Document; or 1 (iv) the issue of any Permit in relation to a power station which 2 Permit is subject to conditions or provisions different to the 3 conditions and provisions applying to an equivalent Permit 4 issued in relation to the GPS or its operations; 5 and the doing of anything described in subparagraphs (i) to (iv) 6 does not contravene paragraph (a). 7 (e) Paragraph (a) does not prevent or restrict the taking of any action 8 or combination of actions by the State, any instrumentality of the 9 State or any body (including a statutory body), authority 10 (including a local authority), agency or public officer of the State 11 to enforce compliance by a Participant or the Operator with a law 12 even though the law does not apply to QEC because QEC 13 represents the Crown. 14 (f) The making or enforcement of by-laws by the Local Authority 15 that are of general application throughout its Local Authority Area 16 and the granting of approval by the Governor in Council to the 17 by-laws does not contravene paragraph (a). 18 12. No State electricity taxes 19 Each Participant, BSL, the Operator and the GPS Licensee will be 20 exempt from all taxes, levies and imposts which may be specifically 21 imposed under an Act of the State on the generation, transmission, sale or 22 consumption of electricity in so far as they would otherwise apply to the 23 generation, transmission or sale of electricity to, or consumption of 24 electricity by, BSL. 25 13. Environmental matters 26 (a) From the Date of Transfer and despite any Environmental 27 Legislation or other law to the contrary-- 28 (i) the standards, parameters, conditions and requirements set 29 out in the GPS Environmental Policy Schedule 30 ("Prescribed Requirements") apply to and regulate the 31

 


 

35 Gladstone Power Station Agreement SCHEDULE (continued) environmental effects and emissions from or in connection 1 with the GPS and its operations; and 2 (ii) environmental effects and emissions from or in connection 3 with the GPS and its operations that conform with the 4 Prescribed Requirements are authorised; and 5 (iii) a Permit required under any Environmental Legislation in 6 relation to the GPS or its operations will-- 7 (A) be issued to the Operator; and 8 (B) conform with the Prescribed Requirements relevant to 9 the Permit; and 10 (C) be issued so that it is consistent with the provisions and 11 conditions contained in the GPS Environmental Policy 12 Schedule that are relevant to the Permit. 13 (b) To the extent that the Prescribed Requirements differ from or are 14 inconsistent with standards, parameters, conditions and 15 requirements contained or prescribed in any Environmental 16 Legislation, the application of that Environmental Legislation to 17 the GPS, its operation, the Participants and the Operator is 18 modified only to the extent of that difference or inconsistency 19 and, in all other respects (including those mentioned in 20 paragraph (c)), the Environmental Legislation applies with full 21 force and effect. 22 (c) To the extent to which any Environmental Legislation (as 23 modified by paragraph (b)) is not complied with, the provisions 24 of that Environmental Legislation in relation to offences, penalties 25 and remedies for noncompliance with or breaches of that 26 Environmental Legislation (as so modified) will apply. 27 (d) To avoid doubt, the GPS Environmental Policy Schedule and the 28 authority contained in subparagraph (a)(ii) remain in force only 29 for so long as this Agreement is in force. 30

 


 

36 Gladstone Power Station Agreement SCHEDULE (continued) 14. Ash management 1 (a) For the purposes of the Contaminated Land Act, the parties to the 2 Ash Management Agreement and the Operator will be taken not 3 to have caused or permitted land contamination, and not to have 4 approved any action that causes land contamination, by disposing 5 of ash, or permitting the disposal of ash, under the Ash 6 Management Agreement if-- 7 (i) the ash disposed of in accordance with the Ash Management 8 Agreement conforms to the physical and/or chemical criteria 9 specified in the GPS Environmental Policy Schedule; and 10 (ii) the rehabilitation obligations of the Participants and the 11 Operator specified in the GPS Environmental Policy 12 Schedule are complied with in all material respects. 13 (b) If the rehabilitation obligations of the Participants and the 14 Operator specified in the GPS Environmental Policy Schedule are 15 complied with in all material respects, then, for the purposes of 16 the Contaminated Land Act, the disposal of ash in accordance 17 with the Ash Management Agreement prior to the date of 18 termination of this Agreement is expressly authorised. 19 (c) The parties to the Ash Management Agreement (and their 20 delegates under that Agreement from time to time) are entitled to 21 exercise their respective rights under the Ash Management 22 Agreement despite anything to the contrary contained or implied 23 in any Act of the State (including, without limitation, any 24 Planning Legislation). 25 (d) For the purposes of this Clause 14, a mortgagee or chargee of a 26 Participant's rights under the Ash Management Agreement (or a 27 receiver or a receiver and manager appointed by it) will be taken 28 to be a party to the Ash Management Agreement. 29 15. Resumption and zoning of GPS Site 30 (a) The State will not resume or compulsorily acquire, and will not 31 suffer or permit to be resumed or compulsorily acquired under an 32

 


 

37 Gladstone Power Station Agreement SCHEDULE (continued) Act of the State, any part of the GPS Site if the resumption or 1 compulsory acquisition would unduly prejudice or interfere with 2 the operation of the GPS by the Participants. 3 (b) For the purposes of any Planning Scheme in force in the Local 4 Authority Area in which the GPS Site is situated-- 5 (i) the GPS Site is taken to be zoned as a Special Facilities 6 (Gladstone Power Station) Zone; and 7 (ii) the use of the GPS Site for the development or operation of 8 the GPS (and for uses incidental to the development or the 9 operation of the GPS) is a permitted use and the Local 10 Authority may not require an application to be made under 11 any Planning Legislation in respect of the permitted use of 12 the GPS Site; and 13 (iii) the GPS Site is to remain zoned as a Special Facility 14 (Gladstone Power Station) Zone for the term of this 15 Agreement. 16 16. Compliance with Building Act 17 QEC and the Queensland Electricity Generating Board are taken to have 18 complied in all respects with the requirements of the Building Act 1975 (as 19 amended) and the Standard Building By-laws 1975 (as amended) in 20 relation to the construction of generating units 5 and 6 at the GPS. 21 PART III--RIGHTS OF THE STATE 22 17. State's exclusive right to reacquire the GPS 23 (a) If, subject to Force Majeure, the Smelter has not been expanded 24 by the construction and commissioning of the Third Potline so 25 that the Smelter is fully operable as expanded by 30 September 26 1998 then the State (or any statutory body nominated by the 27

 


 

38 Gladstone Power Station Agreement SCHEDULE (continued) State) has the exclusive right until 1 April 2001 to acquire the 1 GPS from the Participants and any mortgagee or receiver of any 2 Participant's interest in the GPS (the "Vendors") on terms to be 3 agreed between the State and the Vendors. The terms are to 4 include the reinstatement of the First Power Agreement. 5 (b) For the purposes of paragraph (a), "Force Majeure" means any 6 event or circumstance or combination of events and 7 circumstances which is beyond the control of BSL, examples of 8 which are mentioned in paragraph (c), which causes or results in 9 delay by BSL in constructing, commissioning or putting into 10 operation the Third Potline where both such delay and the 11 occurrence and the effects of such event and/or circumstance 12 could not have been prevented, overcome or remedied by the 13 exercise by BSL of a standard of care and diligence consistent 14 with that of a prudent and competent person under the 15 circumstances, which standard includes (but is not limited to) the 16 expenditure of reasonable sums of money and the application of 17 technology known to prudent and competent persons. 18 (c) Force Majeure includes, provided it satisfies the requirements of 19 paragraph (b), the following-- 20 (i) fire, lightning, explosion, flood, earthquake, storm, cyclone, 21 action of the elements, riots, civil commotion, malicious 22 damage, natural disaster, sabotage, act of a public enemy, act 23 of God, war (declared or undeclared), blockade, revolution, 24 radioactive contamination, toxic or dangerous chemical 25 contamination or force of nature; 26 (ii) action or inaction by a Court, Government or authority 27 (including denial, refusal or failure to grant any permit, 28 authorisation, licence, approval or acknowledgment despite 29 timely best endeavours to obtain the grant); 30 (iii) strikes, lockouts, industrial and/or labour disputes and/or 31 difficulties, workbans, blockades or picketing; 32 (iv) breakdown or failure of any facilities, machinery or 33 equipment which by the exercise of due diligence BSL is 34 unable to prevent or overcome provided however that such 35

 


 

39 Gladstone Power Station Agreement SCHEDULE (continued) breakdown or failure has been caused by any one or more of 1 the events set out in subparagraphs (i), (ii) and (iii); 2 (v) unavailability of essential equipment, goods, supplies or 3 services that, by the exercise of due diligence or the 4 expenditure of reasonable sums of money, BSL is unable to 5 prevent or overcome. 6 (d) The Participants will ensure that BSL-- 7 (i) gives written notice as soon as practicable to the Minister of 8 any Force Majeure giving full particulars of the relevant 9 cause; and 10 (ii) takes all reasonable steps to minimise the effect of any event 11 of Force Majeure. 12 18. Stamp duty 13 (a) Subject to the limitation specified in paragraph (c) of this Clause 14 18, the following instruments and any transactions evidenced or 15 effected by them are exempt from stamp duty under the Stamp 16 Act-- 17 (i) the Power Station Sale Agreement and any transfer or other 18 instrument executed under it; 19 (ii) any instrument entered into by a Participant in connection 20 with the financing of the acquisition by the Participants from 21 QEC of the GPS, or any subsequent refinancing, that is 22 otherwise dutiable under the `MORTGAGE, BOND, 23 DEBENTURE and COVENANT' head of charge in the 24 Stamp Act; 25 (iii) any instrument entered into in connection with the 26 Acquisition by a Long Term Investor of an interest in a 27 Participant or the acquisition of all or part of the interest of a 28 Participant in the Joint Venture and in the Relevant Assets 29 (including any instrument providing for or securing the 30 payment or repayment of any financing or refinancing 31 referred to in subparagraph (ii)); 32

 


 

40 Gladstone Power Station Agreement SCHEDULE (continued) (iv) any instrument otherwise dutiable under the `MORTGAGE, 1 BOND, DEBENTURE and COVENANT' head of charge 2 in the Stamp Act entered into in connection with the 3 financing of the Smelter Expansion and/or the Smelter 4 Upgrade to the extent that it secures moneys borrowed or 5 raised and used in connection with the Smelter Expansion or 6 Smelter Upgrade; 7 (v) any of the following instruments if entered into in 8 connection with the Smelter Expansion-- 9 (A) any instrument entered into in connection with the 10 Acquisition of an interest in BSL or a shareholder in 11 BSL; 12 (B) any transfer by a shareholder in BSL of any rights it 13 may have under documentation relating to the Smelter; 14 (C) any restatements or amendments of documentation 15 relating to the Smelter; 16 (vi) the Participants Charge and any collateral, auxiliary, 17 additional or substituted security or security by way of 18 further assurance; 19 (vii) any cross charges between the Participants and any 20 collateral, auxiliary, additional or substituted security or 21 security by way of further assurance. 22 (b) A person who might otherwise be obliged to prepare, and lodge 23 with the Commissioner of Stamp Duties, a statement in relation 24 to a transaction mentioned in paragraph (a) is relieved from the 25 obligation to do so. 26 (c) The stamp duty exemptions contained in paragraph (a) and the 27 relief contained in paragraph (b) do not apply to any instrument 28 executed or transaction entered into on a date more than 3 years 29 after the Date of Transfer. 30 (d) If a Long Term Investor Disposes (otherwise than by way of 31 mortgage) of the whole or any part of an interest described in 32 subparagraph (a)(iii) (a "Relevant Interest") within 7 years of 33

 


 

41 Gladstone Power Station Agreement SCHEDULE (continued) the date of its acquisition of that Relevant Interest, that Long Term 1 Investor must pay to the State that proportion of the stamp duty 2 that (but for the exemption contained in paragraph (a)) would 3 have been chargeable under the Stamp Act on the acquisition by 4 that Long Term Investor of the Relevant Interest that is equal to 5 the proportion of the Relevant Interest being Disposed of. 6 (e) (i)If the Participants Dispose of the whole (or substantially the 7 whole) of the Relevant Assets within 5 years after the Date of 8 Transfer, then (in addition to any liability the Participants or any 9 other person may have under the Stamp Act in respect of that 10 Disposal), the Participants will pay to the State an amount 11 calculated by-- 12 (A) determining the stamp duty that would have been 13 chargeable under the Stamp Act, on the Date of 14 Transfer, on a conveyance or transfer of property (other 15 than marketable securities) for a consideration equal to 16 the amount by which the full value of the consideration 17 received or derived by the Participants (and any related 18 person of a Participant) in respect of the Disposal 19 exceeds the Relevant Amount on the day of the 20 Disposal in question; and 21 (B) deducting from the amount determined under 22 subparagraph (e)(i)(A) any amount previously paid to 23 the State under paragraph (f) or paragraph (g). 24 (ii) If by 2 or more Disposals, whether involving the same or 25 different Disponees-- 26 (A) that arise from a single agreement (whenever made); or 27 (B) that together form, or arise from, substantially one 28 transaction or one series of transactions; 29 the Participants Dispose of the whole (or substantially the 30 whole) of the Relevant Assets, then, despite the provisions 31 of paragraph (f), those Disposals are taken to constitute one 32 and the same Disposal to which the provisions of 33 subparagraph (e)(i) apply. 34

 


 

42 Gladstone Power Station Agreement SCHEDULE (continued) (f) Subject to subparagraph (e)(ii), if an Initial Participant Disposes 1 of the whole or any part of the interest held by it in the Joint 2 Venture and in the Relevant Assets at the Date of Transfer within 3 5 years after the Date of Transfer, then (in addition to any liability 4 that Initial Participant or any other person may have under the 5 Stamp Act in relation to that Disposal) that Initial Participant must 6 pay to the State an amount calculated by-- 7 (i) determining the stamp duty that would have been chargeable 8 under the Stamp Act, on the Date of Transfer, on a 9 conveyance or transfer of marketable securities for a 10 consideration equal to-- 11 A - (B x C) 12 where-- 13 A is the full value of the consideration received or derived by 14 that Initial Participant (or any of its related persons) in 15 relation to the interest in question; and 16 B is the percentage interest of that Initial Participant in the 17 Joint Venture at the Date of Transfer that is being Disposed 18 of; and 19 C is the Relevant Amount on the day of the Disposal in 20 question; and 21 (ii) deducting from the amount determined under 22 subparagraph (f)(i) any amount previously paid to the State 23 by the relevant Initial Participant under subparagraph (g)(i) 24 as a result of the Acquisition of an interest in a Relevant 25 Corporation as mentioned in subparagraph (g)(i). 26 (g) (i)If a shareholder (a "Relevant Shareholder") in an Initial 27 Participant, an unlisted corporation interposed between an 28 Initial Participant and its ultimate holding company or an Initial 29 Participant's unlisted ultimate holding company (each a 30 "Relevant Corporation") Disposes of the whole or any part 31 of the percentage indirect or direct interest held by it in that 32 Relevant Corporation at the Date of Transfer within 5 years 33 after the Date of Transfer, then (in addition to any liability any 34

 


 

43 Gladstone Power Station Agreement SCHEDULE (continued) person may have under the Stamp Act in relation to that 1 Disposal) the relevant Initial Participant must pay to the State 2 an amount equal to the stamp duty that would have been 3 chargeable under the Stamp Act on the Date of Transfer at the 4 Applicable Rate on a conveyance or transfer for a consideration 5 equal to-- 6 A - (B x C x D) 7 where-- 8 A is the full value of the consideration received or derived by 9 the Relevant Shareholder or any of its related persons (other 10 than by way of subscription moneys paid on the allotment or 11 issue of any shares) in respect of the interest in question (the 12 "Full Consideration") less that proportion of the Full 13 Consideration that the amount that would be the value of the 14 interest in question at the time of the Disposal if the relevant 15 Initial Participant did not at that time hold an interest in the 16 Joint Venture and in the Relevant Assets bears to the full 17 value of the interest in question; and 18 B is the Relevant Shareholder's percentage indirect or direct 19 interest in the Relevant Corporation at the Date of Transfer 20 that is being Disposed of; and 21 C is the lesser of-- 22 (1) the percentage interest of the relevant Initial 23 Participant in the Joint Venture at the date of 24 Transfer; and 25 (2) the percentage interest of the relevant Initial 26 Participant in the Joint Venture on the date of 27 the Disposal in question; and 28 D is the Relevant Amount on the date of the 29 Acquisition in question. 30 (ii) For the purposes of subparagraph (g)(i)-- 31 (A) a Relevant Shareholder is taken to Dispose of a 32 percentage indirect or direct interest in a Relevant 33

 


 

44 Gladstone Power Station Agreement SCHEDULE (continued) Corporation where, as a result of the Acquisition by a 1 person of an interest in that Relevant Corporation, the 2 Relevant Shareholder's percentage indirect or direct 3 interest in that Relevant Corporation is reduced; and 4 (B) the percentage interest so Disposed of is the percentage 5 by which the Relevant Shareholder's percentage 6 indirect or direct interest in that Relevant Corporation is 7 reduced. 8 (iii) For the purposes of subparagraph (g)(i), the Applicable Rate 9 is the rate applicable to a conveyance of marketable securities 10 except where the Disposal in question is one of a number of 11 Disposals of all interests in all Participants (whether Initial 12 Participants or not) whether or not involving the same 13 Disponors or different Disponors and the same Acquirers or 14 different Acquirers-- 15 (A) that arise from a single agreement (whenever made) to 16 Dispose of the same; or 17 (B) that together form, or arise from, substantially one 18 transaction or one series of transactions; 19 in which case the Applicable Rate is the rate applicable to a 20 conveyance of property other than marketable securities. 21 (iv) For the purposes of subparagraph (g)(i), a corporation is 22 taken to have been an unlisted corporation at a particular time 23 if at the time no shares or securities in the corporation were 24 listed for quotation in the official list of a stock exchange or 25 securities exchange in Australia or elsewhere. 26 (h) For the purposes of paragraphs (e), (f) and (g), the "Relevant 27 Amount" means, on the day on which it is to be calculated (the 28 "Relevant Day"), an amount equal to-- 29 A+B-C 30 where-- 31 A is the sum of-- 32

 


 

45 Gladstone Power Station Agreement SCHEDULE (continued) (i) the purchase price paid by the Participants under the 1 Power Station Sale Agreement for inventories; and 2 (ii) the purchase price paid by the Participants under the 3 Power Station Sale Agreement for the GPS (other than 4 inventories); and 5 (iii) each of the amounts expended by the Participants, or 6 reimbursed by the Participants to QEC, under the 7 Refurbishment and Testing Deed in relation to capital 8 improvements effected under that Deed in the period up 9 to the Date of Transfer; and 10 (iv) the Relevant Percentage of the aggregate of the amounts 11 referred to in (ii) and (iii), calculated on a daily basis 12 from the Date of Transfer to the Relevant Day and 13 compounded on 30 June and 31 December in each year 14 during that period; and 15 B is the sum of-- 16 (i) each of the amounts expended by the Participants in the 17 making of capital improvements to the GPS in the 18 period from the Date of Transfer to the Relevant Day; 19 and 20 (ii) the Relevant Percentage of each of the amounts so 21 expended, calculated on a daily basis in relation to each 22 of those amounts from the date on which it was 23 expended to the Relevant Day and compounded on 24 30 June and 31 December in each year during that 25 period; and 26 C is the sum of-- 27 (i) each of the daily amounts by which each capital 28 improvement mentioned in the definitions of A and B 29 depreciates in value in the period up to the Relevant 30 Day (being in each case the amount determined by 31 dividing by 365 the aggregate depreciation, if any, that 32 would be claimable by the Participants under the 33 Income Tax Assessment Act 1936 (as amended) of the 34

 


 

46 Gladstone Power Station Agreement SCHEDULE (continued) Commonwealth in relation to the capital improvement 1 in question for the whole of the financial year in which 2 the day in question falls); and 3 (ii) the Relevant Percentage of each of those daily amounts, 4 calculated in relation to each of those amounts from the 5 date as at which it was determined to the Relevant Day 6 and compounded on 30 June and 31 December in each 7 year during that period. 8 (i) A person liable to pay an amount to the State under one or more 9 of paragraphs (d), (e), (f) or (g) must, on the Disposal or 10 Acquisition in question, immediately give to the Minister written 11 notice of the Disposal or Acquisition that gave rise to the liability, 12 all details of or in connection with the Disposal or Acquisition 13 and true certified copies of all documents of or incidental to the 14 Disposal or Acquisition, together with any other information 15 requested at any time and from time to time by the Minister to 16 enable a calculation to be made of the amount payable. 17 (j) (i)Persons liable to pay an amount to the State under one or more 18 of paragraphs (d), (e), (f) or (g) ("Amount Due") must pay 19 the Amount Due within 1 month of the date of the written 20 demand by the Minister for the Amount Due. 21 (ii) If an Amount Due is not paid in full to the State within the 22 1 month period, the person liable must pay as default interest 23 to the State until the Amount Due has been paid in full an 24 amount equal to 3% of the unpaid Amount Due in relation to 25 the first month after expiry of that initial 1 month period and 26 an additional 2% of the unpaid Amount Due in relation to 27 each further month or part of a month during which the 28 Amount Due is not paid in full. 29 PART IV--LIABILITY OF PARTIES 30

 


 

47 Gladstone Power Station Agreement SCHEDULE (continued) 19. Liability of the State 1 A variation, modification or replacement of a Capacity Purchase 2 Agreement or the Interconnection and Power Pooling Agreement from that 3 originally entered into does not vary, modify or reduce the rights or add to 4 the obligations of the State under Clause 10 in relation to credit support 5 unless the variation, modification or replacement has the prior written 6 approval of the Minister. 7 20. Liability of Participants 8 The obligations of each Participant under this Agreement are-- 9 (a) several (in proportion to their respective percentage interests from 10 time to time in the Joint Venture) as regards monetary obligations 11 (whether in debt or in damages, including damages for breach of 12 any non-monetary obligation); and 13 (b) joint as regards non-monetary obligations. 14 PART V--MORTGAGE, ASSIGNMENT AND 15 TERMINATION 16 21. Mortgage and assignment of interests 17 (a) (i)Rights and interests under this Agreement cannot be assigned, 18 mortgaged, charged, disposed of or otherwise dealt with by a 19 Participant or the Operator except as provided in this Clause 21. 20 (ii) An assignment, mortgage, charge, disposition or other 21 dealing by a Participant or the Operator with rights or 22 interests under this Agreement other than as provided in this 23 Clause 21 is void. 24 (b) A Participant and the Operator may at any time mortgage or 25 charge all or any of its rights or interests under this Agreement 26 with the prior written consent of the Minister, which consent will 27

 


 

48 Gladstone Power Station Agreement SCHEDULE (continued) not be unreasonably withheld where the Participant or the 1 Operator, as the case may be, first procures the mortgagee or 2 chargee to enter into a deed of covenant in favour of the State (in 3 such form as the Minister reasonably requires) under which the 4 mortgagee or chargee agrees that-- 5 (i) in the exercise of any power of sale or other power of 6 enforcement in the instrument creating the mortgage or 7 charge or conferred by law, the mortgagee or chargee will be 8 bound to comply with the provisions of this Clause 21; and 9 (ii) the mortgagee or chargee will procure an assignee of all or 10 part of its interest in the mortgage or charge to enter into a 11 deed of covenant in favour of the State in the same terms. 12 (c) If a Participant is not in default under this Agreement, that 13 Participant (and any person exercising power of sale under any 14 mortgage or charge) may assign or dispose of all or any of the 15 rights or interests of that Participant under this Agreement to an 16 assignee or disponee of the whole of that Participant's interest or 17 an equivalent part of that Participant's interest in the Joint Venture 18 and in the Relevant Assets if that assignee or disponee is another 19 Participant. 20 (d) A Participant (and any person exercising power of sale under any 21 mortgage or charge) may at any time assign or dispose of all or 22 any of the rights or interests of that Participant under this 23 Agreement with the prior written consent of the Minister, which 24 consent will not be unreasonably withheld where-- 25 (i) the Participant is not in default under this Agreement; and 26 (ii) the Participant is also assigning or disposing of the whole of 27 its interest or an equivalent part of its interest in the Joint 28 Venture and in the Relevant Assets to the assignee or 29 disponee; and 30 (iii) the Participant first procures the assignee or disponee to 31 enter into a deed of covenant in favour of the State (in such 32 form as the Minister reasonably requires) under which the 33 assignee or disponee agrees that as from the date of the 34

 


 

49 Gladstone Power Station Agreement SCHEDULE (continued) assignment or disposal it will be bound by this Agreement 1 as if named as a party to this Agreement in place of the 2 Participant from which its interest is derived to the extent of 3 the interest assigned or disposed of. 4 (e) The Operator may assign or dispose of the whole of its rights and 5 interest under this Agreement with the prior written consent of the 6 Minister, which consent will not be unreasonably withheld 7 where-- 8 (i) the Operator is not in default under this Agreement; and 9 (ii) the Operator first procures the assignee or disponee to enter 10 into a deed of covenant in favour of the State (in such form 11 as the Minister reasonably requires) under which the 12 assignee or disponee agrees that as from the date of the 13 assignment or disposal it will be bound by this Agreement 14 as if named as a party to this Agreement in place of the 15 Operator. 16 (f) (i)A Participant which has assigned or disposed of its rights and 17 interests under this Agreement in accordance with this Clause 18 21 is released from its obligations under this Agreement to the 19 extent of the interest so assigned or disposed of. 20 (ii) If the Operator has assigned or disposed of the whole of its 21 rights and interests under this Agreement in accordance with 22 this Clause 21, the Operator is released from its obligations 23 under this Agreement. 24 22. Termination of Agreement 25 (a) The State may terminate this Agreement without penalty by 26 written notice to the Participants and the Operator at any time 27 after-- 28 (i) the Interconnection and Power Pooling Agreement has been 29 lawfully terminated by QEC or discharged (by performance, 30 effluxion of time or otherwise); or 31 (ii) the State (or any statutory body nominated by the State) 32

 


 

50 Gladstone Power Station Agreement SCHEDULE (continued) acquires the GPS from the Participants or a mortgagee or 1 receiver of the Participants exercising a power of sale. 2 (b) The State may terminate the obligations of the State under this 3 Agreement to a Participant without penalty by written notice to 4 the Participant-- 5 (i) at any time after the Capacity Purchase Agreement between 6 the Participant and QEC is lawfully terminated by QEC or 7 discharged (by performance, effluxion of time or otherwise); 8 or 9 (ii) if the Participant goes into liquidation (other than a voluntary 10 liquidation for the purpose of reconstruction) and fails to 11 observe a material financial obligation under a Transaction 12 Document to which the Participant is a party (other than the 13 Capacity Purchase Agreement between the Participant and 14 QEC) which failure is not caused by a failure by a State 15 Body to observe its obligations under a Transaction 16 Document and which is not finally cured within 90 days; or 17 (iii) if the Participant is in default under any provision of this 18 Agreement and the default is not remedied within 90 days of 19 the date of receipt by the Participant of a notice from the 20 Minister requiring that the default be remedied; or 21 (iv) if an amount that the Participant is liable to pay to the State 22 under Clause 18 is not paid within 90 days of the date of the 23 Minister's demand for payment of the amount. 24 (c) At the time the State issues a notice under subparagraph (b)(iii) or 25 (iv) to a Participant, it will also give a copy of the notice to each of 26 the other Participants. 27 (d) A termination of this Agreement does not affect a right or liability 28 acquired, accrued or incurred under it before its termination or a 29 provision of this Agreement that is intended to survive 30 termination. 31

 


 

51 Gladstone Power Station Agreement SCHEDULE (continued) PART VI--GENERAL 1 23. Notices 2 (a) A notice, notification, approval, consent, demand, election, 3 requisition, agreement or other document or communication 4 required, permitted or appropriate to be given by a party under 5 this Agreement ("Notice") must-- 6 (i) be in writing and signed by the party or its agent; and 7 (ii) be delivered personally or sent by ordinary mail postage 8 prepaid or by facsimile transmission; and 9 (iii) be addressed to the party to whom it is to be given at the 10 address or facsimile number of the party advised under 11 paragraph (b) or at such other address or facsimile number 12 as a party may have substituted for it by notice to the other 13 parties. 14 (b) The address and facsimile number of a party, until another 15 address or facsimile number is substituted in accordance with 16 Clause 23(a), is the address and facsimile number of that party as 17 advised to the other parties on or prior to the execution of this 18 Agreement. 19 (c) (i)If a party delivers a Notice-- 20 (A) by hand; or 21 (B) by facsimile and the sending party completes the 22 transmission; 23 the Notice is taken to be given on the day of delivery if 24 delivered before 4 p.m. local time on a Business Day in the 25 place of delivery and, in any other case, on the next Business 26 Day. 27 (ii) If a party gives a Notice by post, the Notice is taken to be 28 given on the fourth day in the place of delivery after the 29 Notice is posted unless it can be established that the Notice 30 was not received until a subsequent date (in which case the 31

 


 

52 Gladstone Power Station Agreement SCHEDULE (continued) later date is the date the Notice was given) or was not 1 received at all. 2 (iii) If a party gives a Notice by facsimile transmission and the 3 transmission is not fully intelligible, or if the sending party at 4 the time of transmission has reason to believe that the 5 facsimile transmission is not fully intelligible, the party may 6 not rely on this Clause 23 to prove the giving of the notice. 7 (iv) The receiving party cannot object to a facsimile transmission 8 as not being fully intelligible unless the receiving party 9 requests re-transmission within 4 working hours (being 10 hours between 9 a.m. and 5 p.m. local time on a Business 11 Day in the place of delivery) after completion of the 12 transmission. 13 (d) (i)For the purposes of this Clause 23, the Participants must 14 nominate a person as their representative for the giving and 15 receiving of Notices. 16 (ii) Although copies of Notices required to be given under the 17 provisions of this Agreement to a nominated representative 18 may also be forwarded to such other person specifically 19 designated in writing by the nominated representative, the 20 additional copies do not substitute for the primary service. 21 (e) (i)A party is entitled to rely on any communication or document 22 believed by it to be genuine, correct and duly authorised, and to 23 have been communicated or signed by the person by or on 24 behalf of whom it purports to be communicated or signed, and 25 is not liable to another person for the consequences of the 26 reliance. 27 (ii) The appearance of the name of the person signing at the end 28 of a facsimile transmission is sufficient evidence of signing. 29 24. Dispute resolution 30 (a) If a dispute arises between the State and any other party under or 31 in relation to this Agreement (a "Dispute"), a party to the 32

 


 

53 Gladstone Power Station Agreement SCHEDULE (continued) Dispute may give to the other party or parties to the Dispute a 1 notice in writing (a "Notice of Dispute") specifying the Dispute 2 and requiring that it be dealt with in the manner set out in this 3 Clause. 4 (b) If a party gives a Notice of Dispute, the Minister (or the 5 Minister's nominee) and the chief executive officer (or the chief 6 executive's nominee) of each of the other parties to the Dispute 7 must meet in Brisbane within 30 days of the giving of the Notice 8 of Dispute to attempt in good faith, and using their reasonable 9 endeavours, to resolve the Dispute. 10 (c) If the Dispute is not resolved within 60 days of the date on which 11 the Notice of Dispute is given, a party to the Dispute may 12 commence proceedings in relation to the Dispute in a Court of 13 competent jurisdiction. 14 25. Governing law, jurisdiction and service of process 15 (a) This Agreement is governed by the laws of Queensland. 16 (b) Each party irrevocably and unconditionally submits to the 17 exclusive jurisdiction of the Courts of Queensland and courts of 18 appeal from them. Each party waives any right it has to object to 19 any action being brought in those Courts including, but not 20 limited to, claiming that the action has been brought in an 21 inconvenient forum or that those Courts do not have jurisdiction. 22 (c) Without preventing another mode of service, a document in an 23 action (including, but not limited to, a writ of summons or other 24 originating process or any third or other party notice) may be 25 served on a party by being delivered to or left for the party at its 26 address for service of notices under Clause 23. 27 26. Amendment of Agreement 28 This Agreement may from time to time be amended in accordance with 29 Section 5 of the Agreement Act. 30

 


 

54 Gladstone Power Station Agreement SCHEDULE (continued) 27. Waiver 1 A provision or a right granted under this Agreement may not be waived 2 except in writing signed by the party granting the waiver. No omission by a 3 party to require the performance by another or the others of a term or 4 condition of this Agreement nor a forbearance or indulgence granted or 5 shown by a party to another or others releases, discharges or in any way 6 affects or prejudices the right of a party at any time to require strict and full 7 performance by another or others of any or all of the terms or conditions to 8 be observed or performed under this Agreement. 9 28. Exercise of rights 10 A party may exercise a right, power or remedy at its discretion, 11 separately or concurrently with another right, power or remedy. A single or 12 partial exercise of a right, power or remedy by a party does not prevent a 13 further exercise of that or of any other right, power or remedy. Failure by a 14 party to exercise or delay in exercising a right, power or remedy does not 15 prevent its exercise. 16 29. Remedies cumulative 17 The rights, powers and remedies provided in this Agreement are 18 cumulative and are not exclusive of rights, powers or remedies provided by 19 law independently of this Agreement. 20 30. Entire understanding 21 (a) This Agreement embodies the entire understanding and 22 Agreement between the parties as to the subject matter of this 23 Agreement. 24 (b) No oral explanation or information provided by a party, or its 25 advisers, servants or agents, to another party affects the meaning 26 or interpretation of this Agreement or constitutes a collateral 27 agreement, warranty or understanding between any of the parties. 28

 


 

55 Gladstone Power Station Agreement SCHEDULE (continued) 31. Costs 1 Each party must bear its own costs in relation to the negotiation, 2 preparation and execution of this Agreement. 3 32. Ministerial amendments 4 If the Minister may under this Agreement make or give conditions or 5 directions to persons, the Minister may in the Minister's absolute discretion 6 amend or revoke and replace those conditions or directions but not so as to 7 adversely affect the other parties or persons claiming through or under 8 them. 9 EXECUTED by the parties as an Agreement. 10 11

 


 

56 Gladstone Power Station Agreement SCHEDULE (continued) FIRST SCHEDULE (continued) FIRST SCHEDULE 1 LICENCE TO SUPPLY ELECTRICITY 2 Licensee-- # 3 Date of issue of Licence-- # 4 # being the Minister responsible for the administration of the 5 Electricity Act 1976 grants to the Licensee (as nominee for each of the 6 Participants) a licence to supply electricity subject to the following 7 conditions-- 8 (a) (i)the maximum continuous capacity for Gladstone Power Station 9 will be the Net Maximum Capacity (as defined in the 10 Interconnection and Power Pooling Agreement) from time to 11 time under the Interconnection and Power Pooling Agreement 12 but in any event the Gladstone Power Station must not exceed 13 6 operating units of a capacity each of nominally 280 MW; 14 (ii) only Participants are entitled to sell or supply electricity 15 under this Licence; 16 (iii) there must be no on-supply or resale by Boyne Smelters 17 Limited (A.C.N. 010 061 935) of electricity supplied or sold 18 by Participants to Boyne Smelters Limited (A.C.N. 010 061 19 935); 20 (iv) neither a Participant nor the Licensee may mortgage or 21 charge its interest in this Licence without the prior written 22 consent of the Minister of the Crown for the time being 23 responsible for the administration of the Electricity Act 1976 24 (the "Minister"), which consent will not be unreasonably 25 withheld; 26 (v) neither a Participant nor the Licensee may assign, transfer or 27

 


 

57 Gladstone Power Station Agreement SCHEDULE (continued) FIRST SCHEDULE (continued) otherwise deal with its interest in this Licence without the 1 prior written consent of the Minister, which consent will not 2 be unreasonably withheld if there is no default under this 3 paragraph (a), paragraph (b) or any material provision of the 4 Electricity Act 1976 by a Participant or the Licensee; and 5 (vi) an assignment, transfer, mortgage, charge or other dealing 6 with this Licence other than in accordance with 7 subparagraph (iv) or (v) is void. 8 (b) The sale or supply of electricity by Participants under this Licence 9 is only authorised to the Queensland Electricity Commission and 10 Boyne Smelters Limited (A.C.N. 010 061 935) (and to third 11 parties where Participants become entitled to make third party 12 sales under the Interconnection and Power Pooling Agreement). 13 (c) The Minister may revoke this Licence if a breach or default of a 14 condition specified in paragraph (a) or (b) of this Licence or any 15 material provision of the Electricity Act 1976 is not remedied 16 within 90 days of receipt by each Participant and the Licensee of 17 notice of the breach from the Minister or the Queensland 18 Electricity Commission. 19 (d) This Licence will automatically terminate on-- 20 (i) lawful termination of the State Agreement; or 21 (ii) lawful termination by Queensland Electricity Commission 22 or discharge (whether by performance, effluxion of time or 23 otherwise) of the Interconnection and Power Pooling 24 Agreement. 25 (e) In this Licence-- 26 "Interconnection and Power Pooling Agreement" means the agreement 27 so titled between Queensland Electricity Commission and the 28 Participants dated #; 29 "Participant" and "Participants" have the meanings given in the State 30 Agreement; 31 "State Agreement" has the meaning given in the Gladstone Power Station 32

 


 

58 Gladstone Power Station Agreement SCHEDULE (continued) FIRST SCHEDULE (continued) Agreement Act 1993. 1 2

 


 

59 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE 1 GPS ENVIRONMENTAL POLICY 2 PART A--DEFINITIONS AND INTERPRETATION 3 0.1. In this Schedule-- 4 "Chief Executive" means the Chief Executive of the Department; 5 "the Department" means the department principally administering 6 environmental planning; 7 "the Licensee" means, where used in respect of any Part of this Schedule, 8 the person to whom a licence is issued in conformity with the 9 requirements of that Part under Clause 13 of the State Agreement; 10 "State Agreement" means the Agreement of which this Schedule forms 11 part. 12 PART B--AIR EMISSIONS 13 This Part sets out the standards, parameters, conditions and requirements 14 which shall apply in respect of emissions of air impurities from the GPS. 15 1. The provisions in this Section 1 shall apply subject to the provisions of 16 Section 2. 17 Definitions 18 1.1. In this Part-- 19 "original coal" means coal extracted from the Callide, Curragh or 20

 


 

60 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) Blackwater mines (including any extensions of those mines occurring 1 during the term of the State Agreement); 2 "original coals impact" means the environmental impact arising out of the 3 use of original coals in boilers at the GPS on the basis of the 4 conditions set out in this Schedule applicable to those boilers after the 5 refurbishment contemplated under the Refurbishment and Testing 6 Deed; 7 "prescribed fuel" means any original coal and any other fuel source which 8 is made a prescribed fuel under the provisions of paragraph 1.12; 9 "prescribed NOx measurement point" means a point labelled as such on 10 the plan marked `Gladstone Power Station--NOx measurement 11 points' initialled by or on behalf of each of the Participants and the 12 Chief Executive and held in the offices of the Department; 13 "prescribed oxygen measurement point" means a point labelled as such 14 on the plan marked `Gladstone Power Station--oxygen measurement 15 points' initialled by or on behalf of each of the Participants and the 16 Chief Executive and held in the offices of the Department; 17 "prescribed particulates measurement point" means a point labelled as 18 such on the plan marked `Gladstone Power Station--particulates 19 measurement points' initialled by or on behalf of each of the 20 Participants and the Chief Executive and held in the offices of the 21 Department. 22 Chimneys 23 1.2. The emission of air impurities from each boiler to the atmosphere is 24 to be via a chimney which discharges at least 150 m above the level of the 25 floor of the turbine house to which the chimney is related. 26 Efflux velocity 27 1.3. The efflux velocity of emissions of air impurities from each 28 chimney to the atmosphere when the 2 boilers connected to that chimney 29

 


 

61 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) are operating at their nominal maximum capacity is to be not less than a 1 velocity equivalent to 22.87 m/s at 160°C. 2 Particulates 3 1.4. The concentration of solid particle emissions from each boiler during 4 each named month shall be such that the averaged obscuration values for 5 the chimney to which it is related, measured at 5 minutes intervals, fall 6 within the range specified in respect of that chimney in Table 1 for at least 7 the proportion specified in that table of the number of those intervals in that 8 month during which the chimney is operating. 9 1.5. For the purposes of paragraph 1.4-- 10 (a) the term "averaged obscuration value" means, in respect of any 11 chimney for any hour, the flow-weighted averaged obscuration 12 level value, (V), calculated in accordance with the following 13 formula-- 14 Fx (Rx,a + Rx,b ) + F y (Ry,a + Ry,b) 15 V= 2 2 16 Fx + F y 17 Where-- 18 F = the average of the effluent gas flow rates from a boiler over 19 the hour, determined on the basis of the load on the boiler 20 during that hour or such other basis of estimation as the 21 Participants may reasonably determine; 22 R = the average of the obscuration readings recorded in respect 23 of effluent gas passing through an effluent duct during the 24 hour, measured at the prescribed particulates measurement 25 point for that duct and expressed as a percentage; 26 x and y represent the boilers connected to a chimney; and 27 and b represent, in respect of a boiler, the effluent ducts for that 28 a boiler; 29

 


 

62 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) (b) "hour" means a period of 60 minutes; and 1 (c) "effluent duct" means a duct leading from a boiler to a chimney 2 for the purpose of conveying effluent gas from the boiler to the 3 chimney and for which a prescribed particulates measurement 4 point exists. 5 1.6. The Licensee shall install and operate automatic obscuration meters 6 at each prescribed particulates measurement point to indicate to the boiler 7 operator the levels of particulate concentrations in the effluent gas at that 8 point and which produce a record of the measured data. 9 Nitrogen oxides 10 1.7. The concentration of nitric acid or oxides of nitrogen or a mixture 11 thereof in the effluent gas from each boiler at each prescribed NOx 12 measurement point in respect of that boiler, before admixture with air, 13 smoke or other gases, shall not exceed the equivalent of 2.8 grams of 14 nitrogen dioxide per cubic metre (at 0°C and 101.325 kPa when corrected to 15 a reference level of 7% by volume of oxygen). 16 1.8. The Licensee shall install and operate automatic oxygen meters at 17 each prescribed oxygen measurement point to indicate to the boiler operator 18 the concentration of oxygen in the effluent gas at that point and which 19 produce a record of the measured data. 20 1.9. The Licensee shall install and operate automatic nitrogen oxide 21 meters to indicate to the boiler operator the concentration of nitrogen oxides 22 in effluent gases at relevant prescribed NOx measurement points, on the 23 following basis-- 24 (a) One of the operative boilers at the station shall be termed the 25 "nominated boiler" for the purposes of this paragraph. 26 (b) The nominated boiler shall be, initially, boiler number 3 but, from 27 time to time (but no more frequently than annually), another 28 operative boiler, selected by the Participants on a rotational basis 29 having regard to boiler operating schedules, shall become the 30 nominated boiler. 31

 


 

63 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) (c) The Licensee shall install and operate a meter on the nominated 1 boiler to indicate to the boiler operator the concentration of 2 nitrogen oxides in the effluent gas at the prescribed NOx 3 measurement point for that boiler. 4 (d) In addition (but subject to subparagraph (e)), the Licensee shall 5 monitor each of the operative boilers other than the nominated 6 boiler for the whole of 1 day in each named month (which day 7 need not be the same day for all such boilers) to determine the 8 concentration of nitrogen oxides in the effluent gas at the 9 prescribed NOx measurement points for those boilers. 10 (e) If the Participants are able to demonstrate to the Chief Executive 11 that the results of monitoring of the boilers referred to in 12 subparagraph (d) are such as to indicate a general consistency of 13 control of emissions of nitrogen oxides, the Chief Executive may 14 nominate, in place of the requirements of subparagraph (d), such 15 other arrangements for determining consistency of nitrogen oxide 16 emissions as may be agreed with the Participants. 17 (f) Meters used for the purposes of this paragraph shall produce a 18 record of the measured data. 19 Dark smoke emissions 20 1.10. Dark smoke emissions will be measured on the basis of 21 obscuration only. 22 Other gaseous emissions 23 1.11. The emission of all gaseous substances and air impurities other 24 than those referred to in paragraphs 1.4 and 1.7 from each boiler shall be 25 regulated on the basis of the chemical composition of fuels used to operate 26 the boiler, as follows-- 27 (a) The sulphur content of fuel oil burnt in the boiler is not to exceed 28 1.8% by weight. 29 (b) The sulphur content of coal burnt in the boiler is not to exceed 30

 


 

64 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) 0.8% by weight. 1 (c) The content of arsenic, boron, cadmium, chromium, copper, lead, 2 mercury, molybdenum, nickel, selenium, vanadium, zinc, 3 fluorine, chlorine and other trace elements other than sulphur in 4 fuels (other than fuel oil) burnt in the boiler shall be-- 5 (i) where the only such fuels are prescribed fuels--not greater 6 than the maximum values of those elements occurring in 7 prescribed fuels; 8 (ii) in any other case--such as to enable air emissions from the 9 boiler to comply with air emission standards under 10 applicable Environmental Legislation. 11 Prescription of new fuels 12 1.12. The Participants may, at any time, request the Chief Executive to 13 provide a determination in respect of a fuel other than a prescribed fuel for 14 the purposes of this Schedule, in which case the following provisions shall 15 apply-- 16 (a) The Chief Executive may require the Participants to provide all 17 such technical and other information as may be reasonably 18 necessary for the Chief Executive to assess the new fuel and the 19 likely environmental impact of its use in the manner proposed by 20 the Participants when compared with the original coals impact. 21 (b) The Chief Executive shall consider the application and determine 22 whether, in the Chief Executive's reasonable opinion, the new 23 fuel is capable of being used (whether in the manner proposed by 24 the Participants or on the basis of particular conditions) in such a 25 manner as to be unlikely to give rise to air emissions with an 26 environmental impact which is adverse, to a material extent, when 27 compared with the original coals impact. 28 (c) The Chief Executive shall notify the Participants of the 29 determination and any conditions referred to in subparagraph (b) 30 ("relevant conditions"). 31

 


 

65 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) (d) If the Chief Executive's determination is that the new fuel 1 satisfies the test set out in (b) (whether alone or on the basis of 2 relevant conditions) the Participants shall then be at liberty to 3 notify the Chief Executive of their acceptance of the determination 4 and any relevant conditions. 5 (e) The effect of such an acceptance will be-- 6 (i) to make the new fuel a prescribed fuel for the purposes of 7 this Schedule; and 8 (ii) to entitle the Participants to use the new fuel subject to any 9 relevant conditions. 10 Miscellaneous 11 1.13. Records of the monitoring data required to be kept under this Part 12 shall be retained by the Licensee in a safe place for a period of 3 years and 13 shall be produced for examination by officers of the Department upon 14 request and copies of such records are to be provided to the Department 15 upon request. 16 1.14. The Licensee shall provide to the Chief Executive, in respect of any 17 named month during which there has occurred an incident as a result of 18 which the limits specified in this Part have been (or are believed to have 19 been) exceeded, a report which sets out-- 20 (a) the nature of the incident; and 21 (b) the limit which is believed to have been exceeded; and 22 (c) the actions taken and/or proposed to be taken to-- 23 (i) correct the exceedance; and 24 (ii) prevent future such exceedances. 25 1.15. The Licensee shall conduct studies with a view to determining 26 ways in which the particulate emission levels can be minimised pending 27 refurbishment of the boilers and shall keep the Chief Executive informed of 28 the progress of those studies and the implementation of recommendations 29 arising out of them. 30

 


 

66 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) 1.16. If a breakdown of any fuel burning equipment or control 1 equipment or industrial plant causes or is likely to cause the emission of any 2 air impurities from the GPS otherwise than as authorised (whether by this 3 Schedule or otherwise by the Chief Executive), the Licensee shall-- 4 (a) as soon as practicable, notify the Chief Executive or such other 5 officer of the Department as the Chief Executive shall nominate 6 of all information concerning the breakdown then available to the 7 Licensee; and 8 (b) take all practicable means to prevent or minimise those 9 unscheduled emissions. 10 1.17. If the testing of any new or overhauled fuel burning equipment or 11 control equipment or industrial plant is likely to cause the emission of any 12 air impurities from the GPS otherwise than as authorised (whether by this 13 Schedule or otherwise by the Chief Executive), the Licensee shall-- 14 (a) give reasonable notice in writing thereof to the Chief Executive 15 specifying the time when such testing is to be carried out and all 16 other information relating to the proposed testing; and 17 (b) take all reasonable steps to prevent or minimise air pollution 18 resulting from those activities. 19 1.18. The Chief Executive may, in connection with the testing of new 20 fuel sources or equipment by the Participants, substitute different 21 requirements from those set out in this Part in respect of that testing. 22 Gas turbine 23 1.19. The gas turbine located on the GPS Site shall be regulated on the 24 following basis-- 25 (a) The height of the chimney shall be not less than 10 m above 26 ground level. 27 (b) The sulphur content of fuel oil burnt in the turbine is not to exceed 28 1.8% by weight. 29

 


 

67 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) Variation of requirements post-refurbishment 1 2. The standards, parameters, conditions and requirements applicable 2 under Section 1 of this Part shall be modified in respect of each boiler from 3 the day after the date on which the Acceptance Test Certificate is given in 4 respect of that boiler in accordance with the terms of the Refurbishment and 5 Testing Deed or 31 December 1997 (whichever is the earlier) (the 6 "Refurbishment Date") in the following respects (and only those 7 respects). 8 2.1. The concentration of solid particles in the effluent gas from the boiler 9 at each prescribed particulates measurement point in respect of that boiler, 10 before admixture with air, smoke and other gases (at 0°C and 101.32 kPa 11 and when corrected to a reference level of 12% by volume of carbon 12 dioxide) is to be-- 13 (a) not greater than 0.080 g/m3 for 85% of annual operating hours; 14 and 15 (b) not greater than 0.150 g/m3 for 97% of annual operating hours; 16 and 17 (c) not greater than 0.23 g/m3 at all times. 18 2.2. The concentration of nitric acid or oxides of nitrogen or a mixture 19 thereof in the effluent gas from the boiler at each prescribed NOx 20 measurement point in respect of that boiler, before admixture with air, 21 smoke or other gases (at 0°C and 101.325 kPa and when corrected to a 22 reference level of 7% by volume of oxygen) is to be-- 23 (a) not greater than the equivalent of 1.6 grams of nitrogen dioxide 24 per cubic metre for 80% of annual operating hours; and 25 (b) not greater than the equivalent of 1.8 grams of nitrogen dioxide 26 per cubic metre for 95% of annual operating hours; and 27 (c) not greater than the equivalent of 2.5 grams of nitrogen dioxide 28 per cubic metre at all times. 29 2.3. For the purposes of paragraphs 2.1 and 2.2, the term "annual 30 operating hours" in respect of a boiler shall mean the number of hours the 31 boiler was in actual operation, determined over any period of 12 months 32

 


 

68 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) commencing on or after the Refurbishment Date applicable to that boiler. 1 2.4. The sections of duct at which measurements are made for calibrating 2 the opacity meters shall be the same sections of duct leading from the 3 boilers as are used for those measurements as at the day prior to the date of 4 commencement of operation of this Schedule. 5 PART C--WATER EMISSIONS 6 3. This Part sets out the standards, parameters, conditions and 7 requirements which shall apply in respect of all aqueous and liquid waste 8 discharges from the GPS and related areas to waters. 9 Definitions 10 3.1 In this Part, (including Table 2)-- 11 "Discharge Point" means, in respect of any discharge, the place marked as 12 the discharge point for that discharge on a Reference Plan using the 13 descriptions set out in Table 2; 14 "Intake Area" means the area, located at the western end of the canal 15 connecting the GPS with Auckland Inlet, of which the Participants are 16 lessees; 17 "Intake Level" means, in respect of any parameter, the level of that 18 parameter which occurs in the waters of the Intake Area at a given 19 time; 20 "Mixed Waste Stream" means all of the wastes which, at the Date of 21 Transfer, are discharged from a Discharge Point referred to in 22 column (1) or (5) of Table 2; 23 "Prescribed Limit" means, in respect of any parameter set out in Table 2 24 in respect of a Discharge Point, the minimum and/or maximum levels 25 or values for that parameter specified in that table; 26

 


 

69 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) "Reference Plan" means a plan marked `Gladstone Power Station--waste 1 water discharge and sampling points' initialled by or on behalf of each 2 of the Participants and the Chief Executive and held in the offices of 3 the Department and includes that plan as amended from time to time 4 (or any plan lodged in substitution for that plan) under the provisions 5 of paragraph 3.14; 6 "Runoff Quantity" means, in respect of a discharge occurring at any 7 Discharge Point, the quantity of runoff water produced by rainfall 8 occurring in areas which drain to that Discharge Point; 9 "Sampling Point" means, in respect of any discharge, the point marked as 10 the sampling point for that discharge on a Reference Plan; 11 "Tolerance" means, in respect of a Prescribed Limit, a range either side of 12 that level or value, expressed in the same unit of measurement as the 13 Prescribed Limit. 14 3.2. The further terms defined at the foot of Table 2 shall have, in that 15 Table, the meanings assigned to them there. 16 Requirements for discharges 17 3.3. The discharge of wastes from the Discharge Points described in each 18 of columns (1), (5), (8), (9) and (10) of Table 2 to the waters described in 19 that table in respect of those Discharge Points as `Receiving Waters' shall 20 comply with-- 21 (a) the Prescribed Limits and other requirements set out in the 22 column of the table that relates to those discharges, measured at 23 the Sampling Point applicable to each such discharge; and 24 (b) the other requirements of this Part. 25 3.4. For the purposes of paragraph 3.3, a discharge from a Discharge 26 Point shall be deemed to comply with a Prescribed Limit applicable to that 27 Discharge Point for which a Tolerance is indicated where, during the period 28 specified in Table 2 in respect of that Discharge Point, commencing on the 29 Date of Transfer-- 30 (a) for parameters other than Dissolved Oxygen--the level or value 31

 


 

70 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) is less than the sum of the Prescribed Limit and the Tolerance; 1 and 2 (b) for Dissolved Oxygen--the level or value is greater than the 3 difference between the Prescribed Limit and the Tolerance. 4 3.5. If the Participants determine that it is economically viable to 5 segregate a Mixed Waste Stream into 1 or more separate waste streams, the 6 following provisions shall apply-- 7 (a) The Participants shall be entitled to construct new works and/or 8 alter existing works so as to-- 9 (i) segregate the Mixed Waste Stream into 2 or more of the 10 following streams-- 11 (A) condenser cooling water; 12 (B) screen wash water; 13 (C) auxiliary cooling water; 14 (D) other wastes; and 15 (ii) allow the separate discharge of each of the new, segregated, 16 waste streams to the Receiving Waters applicable to the 17 Mixed Waste Stream from which they are derived. 18 (b) The Discharge Points for the new waste streams shall be located 19 at or near the places referred to on the Reference Plan as the 20 approximate location for those Discharge Points. 21 (c) The discharge of the wastes comprised in the new waste streams 22 shall be regulated by those of the provisions of-- 23 (i) columns (2), (3) and (4); or 24 (ii) columns (5), (6) and (7); 25 of Table 2 as are appropriate (having regard to the Mixed Waste 26 Stream from which the new streams are derived and the nature 27 and extent of segregation which has occurred), in replacement of 28 the requirements specified for the existing Mixed Waste Stream. 29 (d) The combined total of the volumes of wastes discharged from a 30

 


 

71 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) group of segregated waste streams is not to exceed the volume 1 specified in Table 2 in respect of the Mixed Waste Stream from 2 which they are derived. 3 General requirements in respect of monitored waste discharges 4 3.6. The following provisions shall apply in respect of all discharges 5 referred to in paragraphs 3.3 and 3.5-- 6 (a) The Licensee shall measure and determine the waste quality 7 parameters referred to in Table 2 for each discharge at each 8 Sampling Point as often as necessary to check that the relevant 9 requirements are being complied with, but not less frequently 10 than the frequency specified in Table 2 as the `Minimum 11 Monitoring Frequency' in respect of that discharge. 12 (b) Records of those waste quality measurements, including time, 13 date, location and details of sampling, are to be prepared and 14 retained by the Licensee in a safe place for a period of 3 years and 15 are to be produced for examination by officers of the Department 16 upon request and copies of such records are to be provided to the 17 Department upon request. 18 (c) Convenient access to all Sampling Points is to be provided and 19 maintained by the Licensee at all reasonable times. 20 (d) The Licensee shall provide to the Chief Executive, in respect of 21 any named month during which there has occurred an incident as 22 a result of which the limits specified in this Part have been (or are 23 believed to have been) exceeded, a report which sets out-- 24 (i) the nature of the incident; and 25 (ii) the limit which is believed to have been exceeded; and 26 (iii) the actions taken and/or proposed to be taken to-- 27 (A) correct the exceedance; and 28 (B) prevent future such exceedances. 29

 


 

72 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) Discharges to Intake Area 1 3.7. The discharge of wastes from the GPS to the Intake Area shall be 2 permitted on the following basis-- 3 (a) for all periods during which the condenser cooling water system 4 is operating-- 5 (i) the quantity of such wastes discharged per day shall not 6 exceed 3 000 m3 plus Runoff Quantity; and 7 (ii) the quality of such wastes is to be such as to ensure that the 8 Prescribed Limits and requirements applicable in respect of 9 any Discharge Point at which those wastes are subsequently 10 discharged to waters external to the Intake Area are complied 11 with; 12 (b) at all other times, the discharge shall consist of uncontaminated 13 stormwater runoff only. 14 General requirements in respect of all discharges 15 3.8. The following provisions shall apply in respect of all discharges 16 referred to in this Part-- 17 (a) For characteristics not listed in respect of any waste discharge, the 18 wastes are not to have any properties and shall not contain any 19 matter or organisms in concentrations which make, or which are 20 likely to make, the affected waters less fit for their environmental 21 values when account is taken of the effective dilution of those 22 wastes and the quality of the receiving waters in the absence of 23 the discharge. 24 (b) The discharge is not to produce any slick or other visual evidence 25 of oil or grease. 26 3.9. For the purposes of requirements which impose limitations on the 27 quantities of wastes authorised as being discharged-- 28 (a) determinations of those quantities are to be made on the basis of 29 estimates, calculated by the Licensee-- 30

 


 

73 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) (i) in respect of emissions which are pumped from the station 1 (such as cooling water), by multiplying the rating of the 2 pumps (at the average operating head) used to discharge 3 those wastes by the number of hours the pumps were in 4 operation; and 5 (ii) in respect of other emissions, by such other method(s) as 6 may be reasonably adopted by the Participants; and 7 (b) records of estimates of the quantities of wastes discharged are to 8 be prepared and retained by the Licensee in a safe place for a 9 period of 3 years and are to be produced for examination by 10 officers of the Department upon request and copies of such 11 records are to be provided to the Department upon request. 12 3.10. The waste discharge authorisations referred to in this Part include 13 an authorisation of all intermediate discharges to holding or settling ponds 14 and other intermediate points prior to the final discharge of the wastes to 15 receiving waters from the Discharge Points referred to in this Part. 16 3.11. The Participants shall not make any of the areas referred to in 17 paragraph 3.10 available for use by the public. 18 Miscellaneous 19 3.12. The Licensee shall ensure that all of its employees are instructed in 20 procedures-- 21 (a) to avoid accidental discharges of wastes; and 22 (b) to remove, disperse or destroy any wastes accidentally discharged 23 to any waters; and 24 (c) to otherwise prevent, abate or mitigate any water pollution caused 25 by any accidental discharge of wastes. 26 3.13. The Licensee shall notify the Chief Executive or such other Officer 27 of the Department as the Chief Executive shall nominate, as soon as 28 practicable, of any accidental discharge of wastes to any waters which 29 causes or is likely to cause water pollution other than discharges authorised 30 (whether by this Schedule or otherwise by the Chief Executive) and shall 31

 


 

74 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) furnish to the Chief Executive any information the Chief Executive or such 1 other Officer of the Department as the Chief Executive shall nominate may 2 request concerning such discharges and shall comply with any reasonable 3 requirements of the Chief Executive for the prevention, abatement or 4 mitigation of any such water pollution. 5 Amendment of Reference Plans 6 3.14. Where necessary or desirable to give effect to the requirements of 7 the Ash Management Agreement, the Participants may nominate different 8 or additional points as the Discharge Points in respect of lands used as 9 reclamation areas under that Agreement and the following provisions shall 10 apply in respect of any such new and/or replaced Discharge Points-- 11 (a) The location of the new and/or replaced points shall be 12 determined with a degree of precision consistent with that of the 13 Reference Plan and shall be subject to the approval of the Chief 14 Executive. 15 (b) The new location shall be-- 16 (i) endorsed on a Reference Plan; or 17 (ii) marked on a new plan, together with all other existing 18 Discharge Points shown on the relevant Reference Plan, and 19 that new plan shall become a Reference Plan in replacement 20 of the then-existing Reference Plan. 21 (c) Emissions from any new points shall conform to the 22 requirements set out in column (9) or (10) of Table 2, depending 23 on the method of treatment applicable to the ash. 24

 


 

75 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) PART D--NOISE EMISSIONS 1 4. This Part sets out the standards, parameters, conditions and 2 requirements which shall apply in respect of noise emissions and effects 3 from the GPS. 4 4.1. The noise levels resulting from the operation of the GPS, measured 5 at the points on or near the boundary of the GPS Site which are specified on 6 the plan marked `Gladstone Power Station--noise measurement points' 7 initialled by or on behalf of each of the Participants and the Chief Executive 8 and held in the offices of the Department (the "Specified Noise Points") 9 shall be such as to not exceed the values, determined in accordance with 10 paragraph 4.2, for the following parameters-- 11 LAeq,T 12 LA50,T 13 LA90,T 14 LA10,T 15 where those parameters have the meanings specified in Australian Standard 16 AS 1055 Acoustics--Descriptors and Measurement of Environmental 17 Noise--Part 1, General Procedures ("AS1055"). 18 4.2. The Participants shall, prior to the Date of Transfer, carry out noise 19 level measurements over a minimum of 7 days at the Specified Noise 20 Points and otherwise in accordance with AS1055 to determine the baseline 21 values for the noise level parameters in paragraph 4.1 and shall notify those 22 measurements to the Chief Executive within 60 days of their determination. 23

 


 

76 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) PART E--ASH DISPOSAL 1 5. This Part sets out the standards, parameters, conditions and 2 requirements which shall apply in respect of ash and ash slurry from the 3 GPS. 4 Definitions 5 5.1. In this Part-- 6 "Landholder" means a landholder as defined in the Ash Management 7 Agreement; 8 "reclamation area" means a reclamation area as defined in the Ash 9 Management Agreement. 10 Ash criteria 11 5.2. The physical and chemical criteria applicable to all ash disposed of 12 from the GPS (other than that sold by or on behalf of each of the 13 Participants to ash purchasers as a raw material for other processes or 14 products) are as follows (determined at the time the ash is deposited)-- 15 (a) The chemical composition of the ash is to meet the criteria in 16 Table 3. 17 (b) The nature of the ash is not to be such as to produce leachate of a 18 nature or to an extent which would cause the waters adjoining the 19 reclamation area on which that ash is deposited, in a baseline 20 condition, to be unfit for any baseline use. 21 5.3. For the purposes of paragraph 5.2-- 22 "baseline condition", where used in respect of any waters, means those 23 waters in the condition they would be in if they contained the ambient 24 contaminant levels which existed in those waters, on the Date of 25 Transfer or, at the Participant's election but subject to the approval of 26 the Chief Executive (which shall not be withheld unless the Chief 27 Executive has reasonable grounds for believing that the ambient 28

 


 

77 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) contaminant levels have materially altered since the Date of Transfer 1 due to the effects of the ash), such later date on which sampling for the 2 purposes of the study (if any) under paragraph 5.7 is completed; 3 "baseline uses", where used in respect of any waters, means the uses to 4 which those waters were legally ordinarily put on the Date of Transfer 5 or, at the Participants election but subject to the approval of the Chief 6 Executive (which shall not be withheld unless the Chief Executive has 7 reasonable grounds for believing that the ambient contaminant levels 8 have materially altered since the Date of Transfer due to the effects of 9 the ash), such later date on which sampling for the purposes of the 10 study (if any) under paragraph 5.7 is completed. 11 5.4. Where, at a point on which ash has been deposited (a "reference 12 point"), a composite core sample is taken from the surface to the specified 13 depth below the surface and is tested, then all of the ash contained within a 14 reference area, determined in accordance with paragraph 5.5 based on the 15 reference point, will be deemed to comply and to have complied at all times 16 with the criteria specified in paragraph 5.2 if, at the time the sample is 17 tested-- 18 (a) the composition of the ash in the sample complies with each limit 19 specified in Table 3; and 20 (b) the level of each relevant parameter in leachate from the ash 21 (collected from elutriation tests conducted in accordance with the 22 United States Environmental Protection Agency Method 1311, 23 Toxicity Characteristic Leaching Procedure (TCLP), modified to 24 use water at pH 6.8), when reduced applying the dilution factor (if 25 any) determined in accordance with paragraph 5.7, is less than the 26 specified value for that parameter. 27 5.5. For the purposes of paragraph 5.4-- 28 "reference area", with respect to any reference point, means an area 29 bounded by-- 30 (i) any 1 or more lines running-- 31 (A) in a north-south direction; or 32

 


 

78 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) (B) in an east-west direction; 1 at the specified distance from the reference point; and 2 (ii) any physical boundaries of the reclamation areas on which 3 the ash is to be deposited which are within the specified 4 distance of that point; 5 "relevant parameter" means a parameter set out in Table 4 and includes, 6 at any particular time, any other parameter which, at that time, is listed 7 in the marine waters standard as an inorganic toxicant and for which a 8 maximum value is specified and which, in the opinion of the Chief 9 Executive, is sufficiently likely to be present in the leachate as to justify 10 testing for it; 11 "specified depth", for the purposes of any reference point, means the 12 lesser of-- 13 (i) 1000 mm; or 14 (ii) the depth of ash placed at that point by the Participants; 15 "specified value", in respect of a relevant parameter, means, subject to 16 paragraph 5.9-- 17 (i) where the parameter is set out in Table 4--the value 18 specified in that table; or 19 (ii) where the parameter is not set out in Table 4--the value 20 specified as the maximum value for that parameter in the 21 marine waters standard; 22 "the marine waters standard" means the aspects of Table 2.1 of the 23 Australian Water Quality Guidelines for Fresh and Marine Waters 24 (Australian & New Zealand Environment & Conservation Council, 25 Canberra 1992) (as amended) which are stated to be applicable to 26 marine waters or, where some other standard regulating the nature of 27 inorganic toxicants allowable in marine waters is given the force of law 28 as a requirement of general application throughout Queensland, the 29 aspects of that standard applicable to waters with baseline uses. 30 5.6. For the purposes of paragraph 5.5, the "specified distance" shall be 31 25 m but the Chief Executive may, from time to time, increase this distance 32

 


 

79 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) if it appears to the Chief Executive that such a course is justified having 1 regard to-- 2 (a) the results of analyses of core samples carried out; and 3 (b) other relevant circumstances. 4 5.7. The Participants may carry out a study to determine-- 5 (a) the extent to which the concentration of the parameters listed in 6 Table 4 in leachate from the ash deposited by the Participants on 7 each reclamation area would be expected to be diluted when 8 introduced into waters adjacent to those areas in a baseline 9 condition (the "dilution effect"); and 10 (b) a number, for each reclamation area, which represents 11 quantitatively the estimated extent of the dilution effect applicable 12 to leachate from that area (the "dilution factor"). 13 5.8. Any such study shall be undertaken as soon as is reasonably 14 practicable after the Date of Transfer in accordance with the following 15 criteria-- 16 (a) the study will be of such a scope and design as is appropriate, in 17 the reasonable opinion of the Chief Executive, to enable the 18 determination of the matters referred to in paragraph 5.7; 19 (b) the study shall take account of the tidal, cooling water and other 20 flows in the receiving waters and the seepage flows from the 21 relevant areas as determined by hydro-geological and/or other 22 data and analysis. 23 5.9. The Participants may apply to the Chief Executive to vary any 24 specified values determined under paragraph 5.5 if, on the basis of data and 25 analysis acceptable to the Chief Executive, it appears that levels other than 26 those so determined are more appropriate for the waters adjoining a 27 reclamation area (such new values to become the specified values in place 28 of those determined in accordance with that paragraph). 29

 


 

80 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) Rehabilitation requirements 1 5.10. The Participants and the Landholders shall be responsible for 2 ensuring that rehabilitation of each reclamation area on which ash is 3 deposited under the Ash Management Agreement is carried out in 4 accordance with the following requirements-- 5 (a) The areas are to be filled in stages to their full design heights, 6 commencing at the ends furthest from the settling basins. 7 (b) As soon as reasonably practicable after each stage has been filled 8 to its full design height, it is to be covered with at least 100 mm 9 of uncontaminated clay or soil and grass cover is to be 10 established. 11 (c) Filled stages are to be sloped and drained and stormwater runoff 12 is to be directed into settling basins until vegetation cover is 13 established. 14 Land use requirements 15 5.11. The Landholders shall observe and comply with the following 16 requirements in respect of all lands held by them on which ash is deposited 17 under the Ash Management Agreement-- 18 (a) The land uses for rehabilitated areas are to be restricted to 19 industrial activities and public open space, subject to management 20 plans to minimise human contact with the ash and protect the 21 environment. 22 (b) Management plans are to include the following requirements-- 23 (i) Excavation spoil is to be disposed of as excess ash in 24 accordance with the Ash Management Agreement and the 25 requirements of this Part. 26 (ii) Traffic areas, footpaths and bike tracks, are to be paved with 27 concrete or asphalt. 28 (iii) Buildings are to have concrete floors at ground level. 29 (iv) Where activities involving possible disturbance of the 30

 


 

81 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) surface are likely in a particular area, the surface of the area 1 in question is to be covered with at least 500 mm of 2 uncontaminated clay, or sealed with concrete or asphalt. 3 (v) Grass clippings and tree prunings derived from the area are 4 not to be fed to animals and grazing animals are not to be 5 allowed onto the relevant land. 6 5.12. The Participants will be responsible for carrying out all sampling 7 and testing required to demonstrate compliance with the requirements of 8 this Part other than those set out in paragraph 5.11. 9 PART F--MISCELLANEOUS 10 6.1. The terms of any plan referred to in this Schedule may be varied by 11 agreement between-- 12 (a) the Chief Executive; and 13 (b) the Participants. 14 6.2. Any notification or communication to be given by the Chief 15 Executive to the Participants shall be given to the Operator on the 16 Participant's behalf. 17 18

 


 

82 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) TABLE 1 Chimney and Averaged Proportion of Related Boilers Obscuration Monthly Value Range Intervals 1-2 CHIMNEY 0-35 80% (Servicing Boilers 1 and 2) 3-4 CHIMNEY 0-35 80% (Servicing Boilers 3 and 4) 5-6 CHIMNEY 0-40 80% (Servicing Boilers 5 and 6)

 


 

83 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) TABLE 2 (1) (2) (3) (4) Aspect Unit Northern Station [Possible New [Possible New [Possible Drain (Existing Point] (Note 1) Point] (Note 1) Modified 535) Point] (Note 2) Discharge General Outlet Screen Wash Auxiliary General Outlet Points(s) (North) Outlet (North) Cooling Outlet (North) Description on (North) Plan: Sampling Point A1 A2 A3 A1 Ref: Receiving Waters: Calliope River Calliope River Calliope River Calliope River Maximum m 3/ 50 000 + Runoff [To be specified] [To be [To be quantity: day Quantity (Note 3) specified] specified] (Note 3) (Note 3) BOD5 mg/L Intake Level + 10 [No conditions] [As for (5)] [As for (1)] (Maximum): Suspended Solids mg/L Intake Level + 30 [No conditions] [As for (5)] [As for (1)] (Maximum): (Tolerance: 70) pH level: 6.5-9.0 [No conditions] [As for (5)] [As for (1)] Dissolved Oxygen mg/L 2 [No conditions] [As for (5)] [As for (1)] (Minimum): Temperature °C NSR [No conditions] [As for (5)] [As for (1)] (Maximum): Residual chlorine mg/L 0.3 [No conditions] [As for (5)] NSR (Maximum): Total iron mg/L Intake Level +1.5 [No conditions] [As for (5)] [As for (1)] (Maximum): Minimum Weekly [No conditions] [As for (5)] [As for (1)] Monitoring Frequency: Other (Specific): Period during Floating Nil Nil which Tolerance material and applies: 12 debris to be months screened from water before discharge

 


 

84 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE--TABLE 2 (continued) (5) (6) (7) Aspect Unit Cooling Water [Possible New [Possible Outlet (Existing Point] (Note 1) Modified 534) Point] (Note 2) Discharge Condenser Screen Wash General Outlet Points(s) cooling water Outlet (South) (South) Description on system outlet Plan: Sampling Point B1 B2 B3 Ref: Receiving Waters: Calliope River Calliope River Calliope River Maximum m 3/ 6 000 000 + [To be specified] [To be quantity: day Runoff Quantity (Note 3) specified] (Note 3) (Note 3) BOD5 mg/L NSR [No conditions] [As for (1)] (Maximum): Suspended Solids mg/L NSR [No conditions] Intake Level + (Maximum): 30 pH level: 6.5-9.0 [No conditions] [As for (1)] Dissolved Oxygen mg/L The greater of 4 [No conditions] [As for (1)] (Minimum): or (Intake Level - 2) Temperature °C Intake Level + 8.5 [No conditions] [As for (1)] (Maximum): Residual chlorine mg/L 0.3 [No conditions] NSR (Maximum): Total iron mg/L Intake Level + 1.5 [No conditions] [As for (1)] (Maximum): Minimum Weekly [No conditions] [As for (1)] Monitoring Frequency: Other (Specific): Nil Floating Nil material and debris to be screened from water before discharge

 


 

85 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE--TABLE 2 (continued) (8) (9) (10) Aspect Unit Coal Pond Ash Placement Ash Placement Overflow Areas--Wet Areas--Dry (Existing 536) (Existing 623) [New Points] Discharge Coal area settling Ash pond Ash pond Points(s) pond outlets discharge discharge Description on outlets (Note 4) outlets (Note 4) Plan: Sampling Point C1, C2 D1, D2 [etc] E1, E2 [etc] Ref: (Note 4) (Note 4) Receiving Waters: Calliope River Tidal waters of Tidal waters of Gladstone Gladstone Harbour (Note Harbour 4) (Note 4) Maximum m 3/ 100 + Runoff Per Area: Runoff quantity: day Quantity 30,000 + Runoff Quantity only Quantity BOD5 mg/L NSR Intake Level + [As for (9)] 20 (Maximum): Suspended Solids mg/L 200 Intake Level + Intake Level + (Maximum): 30 (Tolerance: 30 20) pH level: 6.5-9.0 6.0-9.5 [As for (9)] Dissolved Oxygen mg/L 2 2 (Tolerance: 1) [As for (9)] (Minimum): Temperature °C NSR NSR [As for (9)] (Maximum): Residual chlorine mg/L NSR NSR [As for (9)] (Maximum): Total iron mg/L NSR NSR [As for (9)] (Maximum): Minimum Once each period Fortnightly [As for (9)] Monitoring of discharge Frequency: Other (Specific): Nil Period during Nil which Tolerance applies: 6 months

 


 

86 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE--TABLE 2 (continued) In this Table-- "BOD 5" means the 5 days biochemical oxygen demand; "NSR" means no specific requirements other than those general requirements of the GPS Environmental Policy Schedule which are applicable in respect of all emissions. Notes-- 1. This Discharge Point is not in existence at the Date of Transfer. The conditions specified will only become effective if the Discharge Point is later constructed and operated. 2. This Discharge Point is currently in existence but the requirements specified in this column will only apply if the Mixed Waste Stream currently discharged at this point is segregated. 3. The volume limitation for this point is to be determined based upon the nature of the waste sources which are discharged upon segregation of the Mixed Waste Stream from which this point is derived. However, the aggregate volumes of segregated waste streams is not to exceed the maximum volume specified in respect of the Mixed Waste Stream from which the point is derived plus any Runoff Quantity. 4. The location of the Discharge Points and Sampling Points for the ash reclamation areas is necessarily determined by the requirements of the Ash Management Agreement. The points shown on the Reference Plan may need to be varied over time with changes in the arrangements under the Ash Management Agreement. The receiving waters for those discharges will be the waters shown on the Reference Plan which are adjacent to the Discharge Points from time to time.

 


 

87 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) TABLE 3 Parameter Maximum Content (mg/kg) Antimony 40 Arsenic 100 Barium 2000 Beryllium 10 Boron 100 Cadmium 5 Chromium 250 Cobalt 50 Copper 100 Cyanide 10 Lead 300 Manganese 1000 Mercury 2 Molybdenum 40 Nickel 100 Selenium 50 Silver 50 Tin 100 Vanadium 200 Zinc 500

 


 

88 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) TABLE 4 Parameter Maximum Concentration (mg/L) Antimony 0.5 Arsenic 0.05 Cadmium 0.002 Chromium 0.05 Copper 0.005 Cyanide 0.005 Lead 0.005 Mercury 0.0001 Nickel 0.015 Selenium 0.07 Silver 0.001 Sulfide 0.002 Thallium 0.02 Tin (tributyltin) 0.000002 Zinc 0.05 Note--These levels, taken from the Australian Water Quality Guidelines for Fresh and Marine Waters (Australian & New Zealand Environment & Conservation Council, Canberra 1992), have been specified in the absence of empirical data as to the nature of the leachate from ash from the GPS or as to the baseline condition and baseline uses of the waters adjoining the reclamation areas. They may require revision in accordance with the terms of this Schedule where location-specific empirical data becomes available.

 


 

89 Gladstone Power Station Agreement SCHEDULE (continued) SECOND SCHEDULE (continued) © State of Queensland 1993

 


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