(2) ‘‘Blue Ridge Reservoir’’ means that Res-
ervoir in Navajo County, Arizona, owned by Phelps
Dodge, as more fully described in the Settlement
Agreement.
(3) ‘‘CAP’’ shall mean the Central Arizona
Project, a reclamation project constructed by the
United States pursuant to the Colorado River Basin
Project Act of September 30, 1968, 82 Stat. 885, as
amended.
(4) ‘‘CAWCD’’ shall mean the Central Arizona
Water Conservation District, a political subdivision
of the State of Arizona, which has executed a con-
tract to repay to the United States the reimbursable
costs of the CAP.
(5) ‘‘Community’’ shall mean the Gila River In-
dian Community, an Indian community organized
under section 16 of the Indian Reorganization Act
of June 18, 1934, 48 Stat. 987, duly recognized by
the Secretary, and its members.
(6) ‘‘Community’s CAP Contract’’ shall mean
that contract between the Gila River Indian Commu-
nity and the United States, dated October 22, 1992,
providing for the delivery to the Gila River Indian
Community of up to 173,100 acre-feet per annum of
CAP water.
(7) ‘‘Globe Equity No. 59’’ shall mean the de-
cree entered June 29, 1935, in that action styled as
The United States of America v. Gila Valley Irriga-
tion District, et al., Globe Equity No. 59 in the Dis-
trict Court of the United States in and for the Dis-
trict of Arizona, as amended and supplemented.
(8) ‘‘Hopi tribe’’ shall mean the federally recog-
nized Indian tribe of that name.
(9) ‘‘Navajo Nation’’ shall mean the federally
recognized Indian tribe of that name.
(10) ‘‘Phelps Dodge’’ shall mean Phelps Dodge
Corporation, a New York corporation, its subsidi-
aries, affiliates, predecessors, successors and assigns.
(11) ‘‘Pueblo of Zuni’’ shall mean the federally
recognized Indian tribe of that name.
(12) ‘‘Reservation’’ shall mean the Gila River
Indian Reservation, as it existed on the Initial Effec-
tive Date of the Settlement Agreement, as shown on
the map attached to the Settlement Agreement as
exhibit ‘‘B’’ thereto.
(13) ‘‘San Juan Southern Paiute Tribe’’ shall
mean the federally recognized Indian tribe of that
name.
(14) ‘‘Secretary’’ shall mean the Secretary of
the Interior or his lawful designee.
(15) ‘‘Settlement Agreement’’ shall mean that
agreement dated as of May 4, 1998, among Phelps
Dodge, the Community and the United States.
(16) ‘‘SRP’’ shall mean the Salt River Project
Agricultural Improvement and Power District, a po-
litical subdivision of the State of Arizona, and the
Salt River Valley Water Users’ Association, an Ari-
zona corporation.
(17) ‘‘United States’’ shall mean the United
States of America, in its capacity as trustee for the
Community and of the Reservation; as trustee for
the Allottees and of allotted lands on the Reserva-
tion; and, with respect to section 5.2 of the Settle-
ment Agreement, in all other capacities required in
order to execute the agreements and other instru-
ments and to take the actions referred to in section
5.2 of the Settlement Agreement, including acting
for the part of Defense Plant Corporation.
SEC. 5. APPROVAL OF SETTLEMENT AGREEMENT.
The Settlement Agreement is ratified, approved and
confirmed. The Secretary shall execute the Settlement
Agreement within sixty days of the enactment of this Act
and shall perform all of the Secretary’s duties thereunder
as provided herein and in the Settlement Agreement.
SEC. 6. TRANSFER OF RESERVOIRS.
The Secretary shall take all actions specified in sec-
tion 5.0 of the Settlement Agreement necessary on the
Secretary’s part to obtain title to Blue Ridge Reservoir
from Phelps Dodge. The title to Blue Ridge Reservoir,
once acquired by the Secretary, shall be held by the Sec-
retary in trust for the benefit of the Navajo Nation. In
connection with the Secretary’s performance of his obliga-
tions under section 5.0 of the Settlement Agreement, the
Navajo Nation, the Hopi Tribe, the San Juan Southern
Paiute Tribe, the Pueblo of Zuni, and the United States,
on behalf of each of them, are authorized to execute waiv-
ers of claims against Phelps Dodge and agreements not
to object to certain uses of water by Phelps Dodge in sub-
stantially the form of exhibits ‘‘E’’ and ‘‘J’’ to the Settle-
ment Agreement, which waivers and agreements are here-
by ratified, approved and confirmed. The Navajo Nation,
and the United States on behalf of the Navajo Nation,
is further authorized to enter into an agreement with the
Arizona Game & Fish Department confirming a minimum
pool of water in Blue Ridge Reservoir and for other pur-
poses in substantially the form of exhibits ‘‘G’’ and ‘‘I’’
to the Settlement Agreement, which agreements are here-
by ratified, approved and confirmed.
SEC. 7. REALLOCATION OF CAP WATER.
Simultaneously with the transfer of Blue Ridge Res-
ervoir to the United States as provided for in section 6
of this Act, the Secretary shall: (i) reallocate to the Com-
munity 12,000 acre-feet of the CAP water available to the
Secretary pursuant to section 406(b) of title IV of Public
Law 101–628, 104 Stat. 4483; (ii) amend the Commu-
nity’s CAP Contract to include the CAP water reallocated
to the Community pursuant to this section; and, (iii)
amend the Community’s CAP Contract to extend the term
thereof to 100 years, plus such additional term as may
result from the exercise of the option provided for in, or
other extension of, the Lease referred to in section 8 of
this Act.
(1) All water service capital charges and other
capital charges of any nature associated with the
CAP water reallocated to the Community pursuant
to this Act shall be non-reimbursable to the United
States by the Community.
(2) All water service capital charges and other
capital charges of any nature associated with 10,000
acre-feet of that CAP water currently available to
the Community under the Community’s CAP Con-
tract which shares a priority with 510,000 acre-feet
of non-Indian municipal and industrial CAP water
shall be non-reimbursable to the United States by
the Community.
(3) For purposes of determining the allocation
and repayment of costs of the CAP as provided in
article 9.3 of Contract Number 14–0906–09W–
09245, amendment No. 1, between the United
States and CAWCD dated December 1, 1988, and
any amendment or revision thereof, all of the water
service capital charges and other capital charges of
any nature associated with the water described in
subsections 7(a) and 7(b) of this Act shall be non-
reimbursable and shall be excluded from CAWCD’s
repayment obligation.
(4) The United States shall either—
(A) not charge operation, maintenance,
and replacement (OM&R) charges to the Com-
munity on the first 8,000 acre-feet of CAP
water made available to the Community pursu-
ant to this Act, and shall itself pay any such
charges as are associated with such 8,000 acre-
feet of CAP water; or
(B) charge the Community only that por-
tion of the OM&R charges associated with elec-
trical energy pumping for the entire 12,000
acre-feet of CAP water made available to the
Community pursuant to this Act, and shall
itself pay other OM&R charges associated with
such 12,000 acre-feet of CAP water.
(5) In the event the CAP water made available
to the Community pursuant to this Act is leased to
Phelps Dodge as provided for in section 8 of this
Act, the charges by the United States to Phelps
Dodge for such water when delivered under the
Lease shall be as provided in subsections (d)(1) or
(d)(2) of this section 6.
(6) In the event the exchange provided for in
section 8 of this Act is not approved, the Secretary
shall reallocate to Phelps Dodge 8,000 acre-feet of
the CAP water referred to in subsection 6(b) hereof,
shall amend the Community’s CAP contract to re-
flect such reallocation, and shall enter into a con-
tract with Phelps Dodge for permanent service for
the delivery of such water to Phelps Dodge through
the works of the CAP. The CAP water shall be free
of all capital charges as provided in subsections 7(b)
and 7(c) of this Act. The United States shall charge
Phelps Dodge OM&R charges for such water only as
provided in either subsections 7(d)(1) or 7(d)(2)
hereof and shall itself pay such portions of the
OM&R charges as are not paid by Phelps Dodge.
(7) The provisions of section 226 of Public Law
97–293 (96 Stat. 1273, 43 U.S.C. 485h(f)) shall not
apply to actions taken by the Secretary pursuant to
sections 7, 8, or 9 of this Act.
SEC. 8. CAP WATER LEASE.
The Lease referred to in section 7.0 of the Settlement
Agreement and attached thereto as exhibit ‘‘M’’ is hereby
ratified, approved and confirmed. Notwithstanding the
preceding sentence, the Lease shall not be effective as to
the United States, and the Secretary shall not execute the
Lease, until all environmental compliance associated with
the Secretary’s execution of the Lease has been completed
and the exchange referred to in section 9 of this Act has
been approved as provided in that section. In the event
the Lease becomes effective, the Secretary and the Com-
munity may renew or extend the Lease at the end of the
initial term, or any extended term of the Lease provided
for in the initial Lease, upon such terms as the Commu-
nity, the Secretary and Phelps Dodge may agree, provided
that any such renewal or extension shall not exceed 100
years in term. Subject to the completion of environmental
compliance, CAP water made available pursuant to the
Lease may be used in the manner and at the locations
provided for therein, including exchange for use in any
county in Arizona outside the CAWCD service area.
SEC. 9. EXCHANGE AGREEMENT.
The Secretary and the Community are authorized to
enter into an exchange agreement with Phelps Dodge pur-
suant to which the CAP water leased to Phelps Dodge by
the Community under the Lease authorized under section
8 of this Act is delivered by Phelps Dodge to the Commu-
nity in return for the right to divert water from the Gila
River upstream of the Reservation. The term of any such
exchange agreement, if approved as required by this sec-
tion, shall be for 100 years, plus any additional term occa-
sioned by the exercise of the option contained in the Lease
or other extension authorized in the Lease or this Act.
The Secretary shall commence negotiations with respect
to the exchange agreement forthwith upon the enactment
of this Act and shall process all environmental compliance
associated with the exchange agreement and the Lease in
an expeditious manner. The Secretary shall not execute
the exchange agreement until all such environmental com-
pliance has been finally concluded as provided in the Set-
tlement Agreement and any necessary order approving the
exchange, or any aspect of the exchange, has been ob-
tained from the United States District Court in Globe Eq-
uity No. 59 and the order is final and subject to no further
appeal.
SEC. 10. APPROVAL OF WAIVERS.
The waivers set forth in section 9.0 of the Settlement
Agreement shall be effective, and shall be binding upon,
the Community, and the United States, on behalf of the
Community and the Allottees, from and after the date ei-
ther of the conditions set forth in section 4(c) of the Set-
tlement Agreement occurs. The United States is author-
ized and directed to execute the Settlement Agreement on
behalf of the Allottees in its capacity as trustee for the
Allottees and of allotted lands on the Reservation, and the
Settlement Agreement shall be binding upon the Allottees.
SEC. 11. MISCELLANEOUS.
(a) Execution of the Settlement Agreement by the
Secretary as required by this Act, and the Secretary’s per-
formance of the actions necessary to acquire title to Blue
Ridge Reservoir for the benefit of the Navajo Nation pur-
suant to section 5.0 of the Settlement Agreement shall not
constitute major Federal actions under the National Envi-
ronmental Policy Act (42 U.S.C. 4321 et seq.). The Sec-
retary shall carry out all environmental compliance re-
quired by sections 8 and 9 of this Act. Nothing in this
Act shall be construed as exempting the United States
from carrying out environmental compliance associated
with the use of water from Blue Ridge Reservoir by the
United States for the benefit of the Navajo Nation in the
Little Colorado River Basin in Arizona.
(b) The Navajo Nation, and the United States on be-
half of the Navajo Nation, are authorized to enter into
an agreement with the Town of Payson, Arizona, and the
unincorporated communities of Pine and Strawberry, Ari-
zona (‘‘the Towns’’) or any one of them, to subordinate
water rights held in Blue Ridge Reservoir by the United
States for the benefit of the Navajo Nation to rights to
the use of not to exceed a cumulative total of 3,000 acre-
feet per annum of water in Blue Ridge Reservoir acquired
by the Towns pursuant to the law of the State of Arizona.
(c) The Navajo Nation, and the United States on be-
half of the Navajo Nation, are authorized to enter into
an agreement with Phelps Dodge to subordinate water
rights held in Blue Ridge Reservoir by the United States
on behalf of the Navajo Nation to water rights acquired
by Phelps Dodge in Blue Ridge Reservoir subsequent to
the date of the enactment of this Act pursuant to the law
of the State of Arizona for use on land owned by Phelps
Dodge around Blue Ridge Reservoir identified in the Set-
tlement Agreement. The term of any such agreement and
the consideration to be paid therefor shall be as agreed
to among the Navajo Nation and Phelps Dodge.
(d) With regard to the environmental compliance re-
quired for the actions contemplated in sections 8 and 9
of this Act, the Bureau of Reclamation shall be designated
as the lead agency, and shall coordinate and cooperate
with the other affected Federal agencies as required under
applicable Federal environmental laws.
(e) The Secretary and the Community are authorized
to execute any amendments of the Settlement Agreement
and to perform any action required by any amendments
to the Settlement Agreement which may be mutually
agreed upon by the parties.
(f) Except for the waivers authorized by section 6 of
this Act, nothing in this Act or the Settlement Agreement
shall be construed to quantify or otherwise affect the
water rights, claims or entitlement to water of any Arizona
tribe, band or community or of any claimant in the Gila
River Adjudication, other than the Community, the United
States on behalf of the Community and the Allottees, and
Phelps Dodge.
(g) Any party to the Settlement Agreement, and to
the Lease and the exchange agreement referred to in sec-
tions 8 and 9 of this Act, respectively, if the same are
approved, may bring an action or actions exclusively in
the United States District Court for the District of Ari-
zona for the interpretation and enforcement of this Act,
the Settlement Agreement, the Lease and the exchange
agreement, naming the United States and the Community
as parties, and in any such action or actions, any claim
by the United States or the Community to sovereign im-
munity from suit is hereby waived.
Æ