target minimum flow of 100 cfs just below Pueblo 
dam; 
‘‘(4) include a provision whereby the City of 
Aurora, Colorado, or an enterprise of the City, 
agrees to participate in a long-term water quality 
monitoring and management program as outlined in 
the Implementation Committee Report dated April 
19, 2001; and 
‘‘(5) 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 contact 
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-
tact 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) and (e). 
‘‘SEC. 10. (a) Except as provided under subsection 
(b), all revenue generated pursuant to contracts executed 
under sections 8 and 9 shall be credited as follows: 
‘‘(1) That portion of the charges established 
pursuant to section 8(d) and 9(d) which is attrib-
utable to the component which reflects interest shall 
be credited as a general credit to the Reclamation 
Fund. 
‘‘(2) That portion of the charges established 
pursuant to section 8(d)(2) and the comparable pro-
vision of 9(d) shall be credited against the appro-
priate project operation, maintenance, and replace-
ment costs. 
‘‘(3) All remaining revenues in excess of those 
in paragraphs (1) and (2) of this subsection shall be 
credited as follows: 
‘‘(A) If reimbursable Federal construction 
costs are outstanding for the Fryingpan-Arkan-
sas project at the time revenues are received,
then all remaining revenues shall be covered 
into the Reclamation Fund and credited to the 
Fryingpan-Arkansas Project. All remaining rev-
enues shall be credited against such reimburs-
able costs in a manner the Secretary deems to 
be just and equitable as to the reimbursable 
purposes which are involved. The revenues so 
credited shall not be applied so as to reduce the 
amount of the current annual payments due the 
Secretary from the project contractors or any 
other parties responsible for paying outstanding 
reimbursable project construction costs unless 
and until the party’s current annual payment 
due exceeds the remaining reimbursable con-
struction costs payable by the party. 
‘‘(B) 
If 
no 
reimbursable 
Federal 
Fryingpan-Arkansas Project construction costs 
are outstanding at the time revenues are re-
ceived, then all remaining revenues shall be 
credited to a separate fund, established in the 
Treasury of the United States, to be known as 
the Fryingpan-Arkansas Project Fund, which 
shall remain available, without appropriation, 
for new federally funded construction on the 
project, including, but not limited to, additions,
rehabilitations and betterments, safety of dams 
modifications, and major capital replacements, 
applied against the Federal reimbursable costs, 
if any, of such new construction in such manner 
as the Secretary deems just and equitable as to 
the Federal reimbursable project purposes in-
volved. No expenditures may be made from the 
Fryingpan-Arkansas Project Fund without the 
express written consent of the Secretary and 
the Enterprise. 
‘‘(b) DIRECT PAYMENTS.—Payments generated pur-
suant to contract terms established under section 8(f) and 
the comparable provisions of 9(b) shall be made directly 
by the contractors to the Southeastern Colorado Water 
Activity Enterprise. 
‘‘SEC. 11. (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 et seq.) 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. 590z–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. 12. (a) Excess water storage capacity of the 
Fryingpan-Arkansas project to divert, store, impound, 
pump, or convey nonproject water made available 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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