to the State of New Mexico by Article III(a) of the 
Compact. 
SEC. 304. PROJECT CONTRACTS. 
(a) NAVAJO NATION CONTRACT.— 
(1) HYDROLOGIC
DETERMINATION.—Congress 
recognizes that the Hydrologic Determination satis-
factory to support approval of the Contract has been 
completed. 
(2) CONTRACT APPROVAL.— 
(A) APPROVAL.— 
(i) IN GENERAL.—Except to the ex-
tent that any provision of the Contract 
conflicts with this Act, Congress approves, 
ratifies, and incorporates by reference the 
Contract. 
(ii) AMENDMENTS.—To the extent 
any amendment is executed to make the 
Contract consistent with this Act, that 
amendment is authorized, ratified, and 
confirmed. 
(B) EXECUTION OF CONTRACT.—The Sec-
retary, acting on behalf of the United States, 
shall enter into the Contract to the extent that 
the Contract does not conflict with this Act (in-
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cluding any amendment that is required to 
make the Contract consistent with this Act). 
(3) NO REPAYMENT OBLIGATION.—The Nation 
is not obligated to repay— 
(A) any share of the construction costs of 
the Nation relating to the Project authorized by 
section 302(a); or 
(B) any costs relating to the construction 
of the Navajo Indian Irrigation Project that 
may otherwise be allocable to the Nation for 
use of any facility of the Navajo Indian Irriga-
tion Project to convey water to each Navajo 
community under the Project. 
(4) OPERATION, MAINTENANCE, AND REPLACE-
MENT OBLIGATION.—Subject to subsection (f), the 
Nation shall pay any costs relating to the operation, 
maintenance, and replacement of each facility of the 
Project that are allocable to the Nation. 
(5) LIMITATION, CANCELLATION, TERMINATION, 
AND RESCISSION.—The Contract may be limited by 
a term of years, canceled, terminated, or rescinded 
only by an Act of Congress. 
(b) CITY OF GALLUP CONTRACT.— 
(1) CONTRACT AUTHORIZATION.—To the extent 
consistent with this Act, the Secretary is authorized 
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to enter into a repayment contract with the City 
that requires the City— 
(A) to repay, within a 50-year period, the 
share of any construction cost of the City relat-
ing to the Project; and 
(B) to pay the operation, maintenance, and 
replacement costs of the Project that are allo-
cable to the City. 
(2) SHARE OF CONSTRUCTION COSTS.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall determine the 
share of the construction costs of the City relat-
ing to the Project, based on the ability of the 
City to pay the construction costs of each facil-
ity of the Project that is allocable to the City. 
(B) MINIMUM
PERCENTAGE.—The share 
of the construction costs of the City shall be at 
least 25 percent of the construction costs of the 
Project that are allocable to the City. 
(3) EXCESS CONSTRUCTION COSTS.—Any con-
struction costs of the Project allocable to providing 
capacity to deliver water to the City that are in ex-
cess of the share of the City of the construction 
costs of the Project, as determined under paragraph 
(2), shall be nonreimbursable. 
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(4) GRANT FUNDS.—A grant from any other 
Federal source shall not be credited toward the 
amount required to be repaid by the City under a 
repayment contract. 
(5) TITLE TRANSFER.—If title is transferred to 
the City prior to repayment under section 302(f), 
the City shall be required to provide assurances sat-
isfactory to the Secretary of fulfillment of the re-
maining repayment obligation of the City. 
(6) OPERATION, MAINTENANCE AND REPLACE-
MENT OBLIGATION.—The City shall pay the oper-
ation, maintenance, and replacement costs for each 
facility of the Project that is allocable to the City. 
(7) WATER DELIVERY SUBCONTRACT.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the Secretary shall not enter 
into a contract under paragraph (1) with the 
City until the City has secured a water supply 
for the portion of the Project for which the City 
is responsible by entering into, as approved by 
the Secretary, a water delivery subcontract for 
a period of not less than 40 years beginning on 
the date on which the construction of any facil-
ity of the Project serving the City is completed, 
but for a period not exceeding 99 years, with— 
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(i) the Nation, as authorized by the 
Contract; or 
(ii) the Jicarilla Apache Nation, as 
authorized by the settlement contract be-
tween the United States and the Jicarilla 
Apache Tribe, authorized by the Jicarilla 
Apache Tribe Water Rights Settlement Act 
(Public Law 102–441; 106 Stat. 2237). 
(B) EFFECT.—Nothing in this para-
graph— 
(i) prevents the City from obtaining 
an alternate source of water for the por-
tion of the Project for which the City is re-
sponsible, subject to approval of the Sec-
retary and the State of New Mexico, acting 
through the New Mexico Interstate Stream 
Commission and the New Mexico State 
Engineer; or 
(ii) obligates the Nation or the 
Jicarilla Apache Nation to enter into a 
water delivery subcontract with the City. 
(c) JICARILLA APACHE NATION CONTRACT.— 
(1) CONTRACT AUTHORIZATION.—To the extent 
consistent with this Act, the Secretary is authorized 
to enter into a repayment contract with the Jicarilla 
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