The 4350water Blog highlights some of the issues relating to proposals for potable reuse in Toowoomba and South East Qld. 4350water blog looks at related political issues as well.

Tuesday, March 31, 2009

Purified recycled water - how to access it and what are the risks ...

Water Resource Law and Management

26 March 2009

Purified recycled water - how to access it and what are the risks?

With the completion of the advanced water treatment plant at Bundamba and the Eastern and Western Pipelines, there has been increasing interest in the use of purified recycled water (PRW) in the industrial, construction and rural industries to supplement the supply of potable water.

The supply of PRW to end users in South East Queensland is relatively new and this focus article seeks to provide guidance to potential end users, on the process for gaining access to PRW and, highlight issues end users need to consider when deciding whether PRW is a viable option.

See - McCullough Robertson - Purified recycled water - how to access it and what are the risks?


Blogger Concerned Ratepayer said...

An excerpt:

Risk and contractual liability

Risk allocation and indemnity provisions appear in the Grid Contracts. There are also legislative limitations on liability between the Water Secure, the WGM and local governments, and between local governments and end customers such as:

- section 360ZDI Water Act excludes liability for consequential loss between Water Secure, the WGM and local governments, and

- section 49 Water Supply Act excludes a local government’s liability, as a water service provider, for events that are beyond its control.

Further, in the event PRW is used outside of the defined purpose, whether the purpose is defined in the PRW supply contract or the Plan, an end customer may be prevented from seeking any indemnity for any loss arising from such use.

A common risk allocation in water supply contracts is the risk in the water passing to the end customer at the supply point, being the point at which a customer’s off-take pipeline is connected to the water supply source, i.e. the PRW Pipeline. It would not be unusual for this type of risk allocation to also appear in PRW supply contracts.

As a result, end customers should expect to see a pass through of the applicable provisions contained in the Grid Contracts (which may cover PRW quality, supply interruptions, transfer of risk and indemnity) and the legislative limitations on liability. This, coupled with the requirement for the WGM to approve PRW supply contracts, may leave little scope for the negotiation of the terms and conditions of PRW supply contracts.

12:43 PM, March 31, 2009


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