water quality monitoring, as identified by the South-
eastern Colorado Water Activity Enterprise and the Sec-
retary. 
‘‘SEC. 9. (a) The Secretary of the Interior may enter 
into new and renewal contracts with the City of Aurora, 
Colorado, or an enterprise of the City, for a term not to 
exceed the term referenced in Section 8(c), for the use 
of excess capacity in the Fryingpan-Arkansas Project for 
the purpose of diverting, storing, impounding, pumping, 
exchanging, or conveying nonproject water for irrigation, 
domestic, municipal and industrial, or any other beneficial 
purpose. Such contracts shall be— 
‘‘(1) limited to waters appropriated from the 
Arkansas River held by the City of Aurora, Colo-
rado, or an enterprise of the City that— 
‘‘(A) are decreed water rights and owned 
by the City of Aurora, Colorado, or an enter-
prise of the City as of December 7, 2001; 
‘‘(B) are water rights described in a Colo-
rado Water Court water rights application 
pending as of December 7, 2001, or an amend-
ment or re-filing thereof, as long as such 
amendment or re-filing does not increase the 
draft of water from the Arkansas Basin that 
would have been available to City of Aurora,
Colorado, or an enterprise of the City under the 
original application; 
‘‘(C) result from water lease agreements 
existing as of December 7, 2001, including any 
renewal or replacement contract for no more 
than the existing amount of water; 
‘‘(D) result from interruptible supply 
agreements or water bank transactions author-
ized under Colorado law, and operating no more 
than five calendar years during any period of 
ten consecutive calendar years; or 
‘‘(E) is traded to, or exchanged with, the 
City of Aurora, Colorado, or an enterprise of 
the City for one of the foregoing items (A) 
through (C) as long as such trade or exchange 
does not increase the draft of water from the 
Arkansas River Basin that would have been 
available to the City of Aurora, Colorado, or an 
enterprise of the City under subparagraphs (A) 
through (C); 
‘‘(2) are for water obtained by the City of Au-
rora, Colorado, or an enterprise of the City from the 
Colorado River consistent with section 12; or 
‘‘(3) take into consideration the need to ensure 
compliance with the Arkansas River Compact as exe-
cuted by the states of Colorado and Kansas on De-
cember 14, 1948. 
‘‘(b) Prior to the execution of any renewal contract 
with the City of Aurora, the Secretary of the Interior shall 
execute an Agreement with the Southeastern Colorado 
Water Activity Enterprise, which agreement shall provide 
guidelines for the terms to be contained in a renewal con-
tract executed pursuant to this section. Such guidelines 
shall appropriately address those impacts associated with 
water operations under the contracts, such as storage and 
convenience charges, surcharges established by the Enter-
prise, reimbursement of costs incurred, and water quality 
monitoring, as identified by the Southeastern Colorado 
Enterprise and the Secretary. 
‘‘(c) Any contract executed under the authority of 
subsection (a) or (b) shall be in compliance with the provi-
sions of section 8(b)(1). 
‘‘(d) The Secretary shall establish such charges under 
this section 9 in a manner consistent with the provisions 
of section 8(d). 
‘‘SEC. 10. (a) Nonproject water diverted, stored, im-
pounded, pumped, exchanged, or conveyed under a con-
tract entered into pursuant to section 8 or 9 shall be ex-
empt from any acreage limitation provisions of the Act 
of June 17, 1902 (32 Stat. 388), and Acts amendatory
thereof and supplementary thereto including, but not lim-
ited to, the Warren Act of 1911, the Reclamation Reform 
Act of 1982 (96 Stat. 1263; 43 U.S.C. 390aa-zz-1) and 
from any farm unit size limitations established pursuant 
to section 4(c)(5) of the Act of August 11, 1939 (Chapter 
717; 16 U.S.C. 59–2(c)(5)). 
‘‘(b) Notwithstanding subsection (a), if such non-
project water is commingled with project water in Rec-
lamation project facilities, and the resulting commingled 
supply is used to irrigate lands in a project contractor’s 
service area, then such commingled water shall bear the 
same acreage limitations or farm unit size limitations as 
the project water unless— 
‘‘(1) contract provisions are in effect which pro-
vide that project or nonproject water, or both, will 
be accounted for on a quantitative basis, that project 
water will not be delivered to ineligible land, and 
that appropriate charges, as determined by the Sec-
retary, will be paid for the project water; and 
‘‘(2) the charges for the use of the excess ca-
pacity include an appropriate interest component, as 
determined by the Secretary. 
‘‘SEC. 11. (a) Excess water storage capacity of the 
Fryingpan-Arkansas Project to divert, store, impound, 
pump, exchange, or convey nonproject water made avail-
able under contracts executed pursuant to the provisions 
of sections 8 and 9 shall not be utilized so as to increase 
diversion of nonproject water from the natural basin of 
the Colorado River within Colorado into another river 
basin for delivery or storage unless— 
‘‘(1) the diversion is the subject of a decree en-
tered prior to the effective date of this section for 
which no new infrastructure or legal approvals are 
necessary to divert the water out of the natural 
basin; 
‘‘(2) the diversion is the subject of an agree-
ment in existence on the date of the enactment of 
this section, contemplating additional diversions di-
verted through or stored in the facilities authorized 
by this Act, between the beneficiary of such 
transbasin diversion and the water conservation dis-
trict, as defined under Colorado law, from within 
whose boundaries the waters are proposed for diver-
sion; 
‘‘(3) the diversion is the subject of an intergov-
ernmental agreement or other contractual arrange-
ment executed after the date of the enactment of 
this section, between the beneficiary of such 
transbasin diversion and the water conservation dis-
trict, as defined under Colorado law, from within
whose boundaries the waters are proposed for diver-
sion; or 
‘‘(4) the beneficiary of such transbasin diver-
sion provides compensatory storage or alternate 
water supply in an amount equal to the quantity di-
verted out of the basin for the benefit of the water 
conservation district, as defined under Colorado law, 
from within whose boundaries the waters are pro-
posed for diversion. 
‘‘(b) Prior to executing any agreement, or arrange-
ment or agreement for provision of compensatory storage 
or alternative water supply, that allows for increased di-
versions of nonproject water as described in subsection 
(a), the parties to such agreements or arrangements shall 
submit the agreement or arrangement to the Secretary, 
who, within 30 days, shall submit such agreement or ar-
rangement to the President Pro Tempore of the Senate 
and the Speaker of the House of Representatives for a 
period of not less than 60 days. 
‘‘(c) This section shall not be considered as precedent 
for any other Congressionally authorized project.’’. 
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