under paragraph (1) that is not needed for cur-
rent water demands or uses may be delivered by 
the Project for placement in underground stor-
age in the State of New Mexico for future re-
covery and use. 
(B) STATE APPROVAL.—Delivery of water 
under subparagraph (A) is subject to— 
(i) approval by the State of New Mex-
ico under applicable provisions of State law 
relating to aquifer storage and recovery; 
and 
(ii) the provisions of the Agreement 
and this Act. 
(b) PROJECT
WATER
AND
CAPACITY
ALLOCA-
TIONS.— 
(1) DIVERSION.—The Project shall divert from 
the Navajo Reservoir and the San Juan River a 
quantity of water that does not exceed the lesser 
of— 
(A) 37,760 acre-feet of water; or 
(B) the quantity of water necessary to sup-
ply a depletion from the San Juan River of 
35,890 acre-feet. 
(2) ALLOCATION.— 
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mstockstill on PROD1PC66 with BILLS
(A) IN GENERAL.—Water diverted under 
paragraph (1) shall be allocated to the Project 
Participants in accordance with subparagraphs 
(B) through (E), other provisions of this Act, 
and other applicable law. 
(B) ALLOCATION TO THE CITY OF GAL-
LUP.—The Project shall deliver at the point of 
diversion from the San Juan River not more 
than 7,500 acre-feet of water for use by the 
City. 
(C) ALLOCATION TO NAVAJO NATION COM-
MUNITIES IN NEW MEXICO.—For use by the 
Nation in the State of New Mexico, the Project 
shall deliver at the points of diversion from the 
San Juan River or at Navajo Reservoir the less-
er of— 
(i) 22,650 acre-feet of water; or 
(ii) the quantity of water necessary to 
supply a depletion from the San Juan 
River of 20,780 acre-feet of water. 
(D) ALLOCATION TO NAVAJO NATION COM-
MUNITIES
IN
ARIZONA.—In accordance with 
subsection (d), the Project may deliver at the 
point of diversion from the San Juan River not 
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mstockstill on PROD1PC66 with BILLS
more than 6,411 acre-feet of water for use by 
the Nation in the State of Arizona. 
(E) ALLOCATION
TO
JICARILLA
APACHE 
NATION.—The Project shall deliver at Navajo 
Reservoir not more than 1,200 acre-feet of 
water for use by the Jicarilla Apache Nation in 
the southern portion of the Jicarilla Apache 
Nation Reservation in the State of New Mexico. 
(3) USE
IN
EXCESS
OF
ALLOCATION
QUAN-
TITY.—Notwithstanding each allocation quantity 
limit described in subparagraphs (B), (C), and (E) 
of paragraph (2), the Secretary may authorize a 
Project Participant to exceed the allocation quantity 
limit of that Project Participant if— 
(A) capacity is available without impairing 
any water delivery to any other Project Partici-
pant; and 
(B) the Project Participant benefitting 
from the increased allocation quantity— 
(i) has the right to use the additional 
water; 
(ii) agrees to pay the operation, main-
tenance, and replacement costs relating to 
the additional use any Project facility; and 
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mstockstill on PROD1PC66 with BILLS
(iii) agrees to pay a fee established by 
the Secretary to assist in recovering capital 
costs relating to that additional use. 
(c) SOURCES OF WATER.—The sources of water for 
the Project allocated by subsection (b) shall be water origi-
nating in— 
(1) drainage of the San Juan River above Nav-
ajo Dam, to be supplied under New Mexico State 
Engineer File No. 2849; and 
(2) inflow to the San Juan River arising below 
Navajo Dam, to be supplied under New Mexico 
State Engineer File No. 3215. 
(d) CONDITIONS FOR USE IN ARIZONA.— 
(1) REQUIREMENTS.—Project water shall not 
be delivered for use by any community of the Nation 
in the State of Arizona under subsection (b)(2)(D) 
until the date on which— 
(A) the Secretary determines by hydrologic 
investigation that sufficient water is reasonably 
likely to be available to supply uses from water 
of the Colorado River system allocated to the 
State of Arizona; 
(B) the Secretary submits to Congress the 
determination described in subparagraph (A); 
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