Northern Cheyenne Indian Reserved Water Rights Settlement Act of 1992
PL 102-374 (S.1607), enacted 09/30/1992

106 STAT. 1186 
PUBLIC LAW 102-374—SEPT. 30, 1992 
Public Law 102-374 
: ,. 
102d Congress 
An Act 
Sept. 30, 1992 
To provide for the settlement of the water rights claims of the Northern Cheyenne 
[S. 1607] 
Tribe, and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of 
Northern 
ffie United States of America in Congress assembled, 
Cheyenne 
Indian 
SECTION 1. SHORT TITLE. 
K6S6I*V6d 
Water Rights 
This Act may be cited as the "Northern Cheyenne Indian 
Settlement 
Reserved Water Rights Settlement Act of 1992". 
Act of 1992. 
" 
Montana. 
SEC. 2. PURPOSES OF ACT. 
(a) PURPOSES.—^The purposes of this Act are: 
(1) to achieve a fair, equitable, and final settlement of 
all claims to Federal reserved water rights in the State of 
Montana of— 
(A) the Northern Cheyenne Tribe and its members 
and allottees; and 
(B) the United States on behalf of the Northern Chey-
enne Tribe and its members and allottees; 
(2) to approve, ratify and confirm the Water Rights Com-
pact entered into by the Northern Cheyenne Tribe and the 
State of Montana on June 11, 1991; 
(3) to direct the Secretary of the Interior to enter into 
a cooperative agreement with the State of Montana for the 
planning, environmental compliance, design, and construction 
of the Tongue River Dam Project in order to— 
(A) implement the Compact's settlement of the Tribe's 
reserved water rights claims in the Tongue River Basin; 
(B) protect existing tribal contract water rights in the 
Tongue River Basin; 
(C) provide 20,000 acre-feet per year of additional stor-
age water for allocation to the Tribe and to allow the 
State to implement its responsibilities to correct identified 
Tongue River Dam safety inadequacies; and 
(D) provide for the conservation and development of 
fish and wildlife resources in the Tongue River Basin; 
(4) to provide for the enhancement of fish and wildlife 
habitat in the Tongue River Basin; 
(5) to authorize certain modifications to the purposes and 
operation of the Big Horn Reservoir in order to implement 
the Compact's settlement of the Tribe's reserved water rights 
claims; and 
(6) to authorize the Secretary of the Interior to take such 
other actions as are necessary to implement the Compact. 
PUBLIC LAW 102-374—SEPT. 30, 1992 
106 STAT. 1187 
SEC. 3. DEFINITIONS. 
As used in this Act: 
(1) ALLOTTEE.—^The term "allottee" means any person who 
owns land in trust on the Northern Cheyenne Reservation. 
(2) COMPACT.—^The term "Compact" means the Water 
Rights Compact entered into on June 11, 1991, by the Northern 
Cheyenne Tribe and the State of Montana. 
(3) NORTHERN 
CHEYENNE FUND.—^The term "Northern 
Cheyenne Fund" means the Northern 
Cheyenne 
Indian 
Reserved Water Rights Settlement Trust Fund established by 
section 6. 
(4) RESERVATION.—The term "Reservation" means the 
Northern Cheyenne Reservation as established by Executive 
orders of November 26, 1884 and March 19, 1900. 
(5) SECRETARY.—^The term "Secretary" means the Secretary 
of the Interior. 
(6) STATE.—^The term "State" means the State of Montana. 
(7) STATE WATER CONTRACTS.—The term "State water con-
tracts" means contracts with the Montana Department of Natu-
ral Resources and Conservation (DNRC), or its successor State 
agency, to receive stored water from the National Resources 
and Conservation's storage rights in the Tongue River Res-
ervoir. 
(8) TONGUE RIVER DAM PROJECT.—The term "Tongue River 
Dam Project" means the project, conducted pursuant to the 
cooperative agreements between the Bureau of Reclamation 
and the State of Montana authorized by this Act and subject 
to conditions contained in the Compact and in the record of 
decision after completion of environmental review, to repair 
and enlarge the Tongue River Dam. 
(9) TRIBAL WATER RIGHT.—^The term "tribal water right" 
means the tribal water right as defined in the Compact. 
(10) TRIBE.—The term "Tribe" means the Northern Chey-
enne Tribe. 
SEC. 4. RATIFICATION OF COMPACT. 
(a) IN GENERAL.—Except as modified by this Act, the Water 
Rights Compact entered into by the Northern Cheyenne Tribe and 
the State of Montana is hereby approved, ratified, and confirmed. 
(b) IMPLEMENTATION.—The Secretary shall implement the Com-
pact as provided in this Act. 
(c) ENTRY OF DECREE.—Except for the authorizations contained 
in subsections 7(b)(1) and 7(b)(2), the authorization of appropria-
tions contained in this Act shall not be effective until such time 
as the Montana water court enters and approves a decree as pro- Effective date, 
vided in subsection (d) of this section. Notwithstanding the provi-
sions of Article V. 2. of the Compact, for the purposes of the 
proceeding involving such a decree, the effective date of the Compact 
shall be the date of the enactment of this Act. 
106 STAT. 1188 
PUBLIC LAW 102-374—SEPT. 30, 1992 
(d) FORM OF DECREE.—No later than 180 days after the date 
of the enactment of this Act, the United States, the Tribe, and 
the State of Montana shall jointly petition the Montana water 
court to enter and approve the "Proposed Decree" agreed to by 
the United States, the Tribe, and the State of Montana on May 
5,1992, or any amended version thereof. 
SEC. 5. USE AND TRANSFER OF THE TRIBAL WATER RIGHT. 
(a) ADMINISTRATION AND ENFORCEMENT.—AS provided in the 
Compact, until the adoption and approval of a tribal water code, 
the Secretary shall administer and enforce the tribal water right. 
(b) MEMBERS AND ALLOTTEES.—^Any entitlement to reserved 
water of any tribal member or allottee shall be satisfied solely 
from the water secured to the Tribe by the Compact and shall 
be governed by the terms and conditions thereof. Such entitlement 
shall be administered by the Tribe pursuant to a tribal water 
code developed and adopted pursuant to Article IILA. of the Com-
pact, or by the Secretary pending the adoption and approval of 
the tribal water code. 
(c) TRANSFER OF THE TRIBAL WATER RIGHT.— 
Contracts. 
(1) IN GENERAL.—Subject to paragraph (2), the Northern 
Cheyenne Tribe, or persons or entities authorized by the Tribe, 
may enter into a service contract, lease, exchange, or other 
agreement providing for the delivery, use, or transfer of the 
tribal water right confirmed to the Tribe in the Compact. 
(2) LIMITATIONS.—^Any service contract, lease, exchange, 
or other agreement entered into under subsection (c)(1) shall 
be subject to approval by the Secretary, and the limitations 
and conditions set forth in the Compact, and may not perma-
nently alienate any portion of the tribal water right. 
SEC. 6. NORTHERN CHEYENNE INDIAN RESERVED WATER RIGHTS 
SETTLEMENT TRUST FUND. 
(a) ESTABLISHMENT OF FUND.—^There is established in the 
Treasury of the United States a trust fund to be known as the 
"Northern Cheyenne Indian Reserved Water Rights Settlement 
Trust Fund". 
(b) 
EXPENDITURES 
FROM 
NORTHERN 
CHEYENNE 
FUND.— 
Amounts in the Northern Cheyenne Fund shall be available, with-
out fiscal year limitations, to the Secretary for expenditure by 
the Secretary or by the Tribe in accordance with the provisions 
of this Act. 
(c) CONTENTS OF NORTHERN CHEYENNE FUND.—^The Northern 
Cheyenne Fund shall consist of such amounts as are appropriated 
to it in accordance with the authorization provided by this Act, 
together with such amounts credited to it in accordance with section 
7(e). 
(d) USE OF NORTHERN CHEYENNE FUND.—The Tribe shall make 
$11,500,000 available from the Northern Cheyenne Fund to the 
State of Montana as a loan to assist financing Tongue River Dam 
Project costs, and such loan shall be repaid by the State to the 
Tribe. All other moneys appropriated to the Northern Cheyenne 
Fund pursuant to section 7(a), together with interest credited there-
to, may be used by the Tribe for— 
(1) land and natural resources administration, planning, 
and development within the Reservation; 
(2) land acquisition by the Tribe within the Reservation; 
or 
PUBLIC LAW 102-374—SEPT. 30, 1992 
106 STAT. 1189 
(3) any other purpose determined by the Tribe. 
(e) PER CAPITA PAYMENTS.—Funds within the Northern Chey-
enne Fund shall not be distributed on a per capita basis to members 
of the Tribe. 
(f) CONGRESSIONAL INTENT.—^Nothing in this Act is intended— 
(1) to alter the trust responsibility of the United States 
to the Tribe; or 
(2) to prohibit the Tribe from seeking additional authoriza-
tion or appropriation of funds for tribal programs or purposes. 
SEC. 7. AUTHORIZATION OF APPROPRIATIONS. 
(a) TRIBAL FUNDS.—^There are authorized to be appropriated 
to the Northern Cheyenne Fund for use by the Tribe $7,400,000 
in fiscal year 1995, $9,000,000 in fiscal year 1996, and $5,100,000 
in fiscal year 1997. 
(b) TONGUE RIVER DAM PROJECT.—(1) There are authorized 
to be appropriated to the Northern Cheyenne Fund for use, in 
accordance with paragraph (2), for the Tongue River Dam Project: 
(A) $700,000 in fiscal year 1993; 
(B) $700,000 in fiscal year 1994; 
(C) $15,300,000 in fiscal year 1995; 
(D) $11,400,000 in fiscal year 1996; and 
(E) $3,400,000 in fiscal year 1997. 
(2) Moneys appropriated pursuant to paragraph (1) shall be 
available for use by the State of Montana and the Secretary for 
the planning, design, and construction of the Tongue River Dam 
Project in accordance with provisions of April 17, 1991, letter of 
agreement signed by the Northern Cheyenne Tribal Federal Nego-
tiation Team and Montana Department of Natural Resources and 
Conservation. The Federal contribution is provided for development 
of additional capacity in the Tongue River Dam for storage of 
water secured to the Tribe in satisfaction of the Tribe's claims 
to water under the Compact. 
(c) INDEXING OF AUTHORIZATION FOR CONSTRUCTION COSTS.— 
For the purposes of this section, the total estimated costs of con-
struction of the Tongue River Dam Project, inclusive of noncontract 
costs, shall be $52,200,000 at the January 1991 price level. The 
project's annual authorization provided in subsection (b) and the 
Federal and State shares shall be adjusted up or down as may 
be required by reason of ordinary fluctuations in construction costs, 
as indicated by engineering cost indices applicable to the type 
of construction involved in the Tongue River Dam Project. 
(d) FISH AND WILDLIFE ENHANCEMENT.— 
(1) IN GENERAL.—^The Secretary shall identify and develop 
features of the Tongue River Dam Project that provide for 
the enhancement of fish and wildlife habitats, in accordance 
with the Federal Water Project Recreation Act (16 U.S.C. 4601-
12 et seq.). 
(2) AUTHORIZATION OF APPROPRIATIONS.—There are author-
ized to be appropriated to the Northern Cheyenne Fund, for 
expenditure by the Secretary, $1,800,000 in fiscal year 1996, 
and $1,700,000 in fiscal year 1997 for Fish and Wildlife 
Enhancement, plus such sums as are necessary to defray 
increases in development 
costs reflected 
in 
appropriate 
engineering costs indices after January 1991. The Tribe shall 
not be required to reimburse amounts expended pursuant to 
this section. 
106 STAT. 1190 
PUBLIC LAW 102-374—SEPT. 30, 1992 
(e) ENVIRONMENTAL COMPLIANCE.—There are authorized to be 
appropriated to the Northern Cheyenne Fund for fiscal year 1993, 
and each fiscal year thereafter, such sums as are necessary to 
carry out all necessary environmental compliance associated with 
the Compact, including mitigation measures adopted by the Sec-
retary. 
(f) 
OPERATION, MAINTENANCE, AND REPLACEMENT COSTS.— 
There are authorized to be appropriated to the Northern Cheyenne 
Fund, for fiscal year 1993, and each fiscal year thereafter, on 
a nonreimbursable basis, such sums as are necessary to pay the 
annual operation, maintenance, and replacement costs provided 
for in section 10(f). 
(g) WITHOUT FISCAL YEAR DEFINITIONS.—^All moneys appro-
priated pursuant to authorizations under this Act shall be available 
without fiscal year limitation. 
SEC. 8. STATE CONTRIBUTIONS TO SETTLEMENT. 
The provisions of section 6(d) shall be subject to the State 
of Montana contributing the following amounts to the settlement: 
(1) $5,000,000 for contract costs associated with repair 
of the Tongue River Dam Project; 
(2) $11,500,000 to be contributed to the Northern Cheyenne 
Fund as repayment of the loan provided for in section 6(d); 
(3) $4,200,000 of noncontract costs assumed by the State 
of Montana according to the terms of the letter of agreement 
on cost-sharing between the State of Montana and the United 
States dated April 17, 1991; and 
(4) $1,100,000 for the Fish and Wildlife enhancement meas-
ures identified in section 7(d). 
SEC. 9. BIG HORN RESERVOIR STORAGE. 
(a) ALLOCATION FOR TRIBE.— 
(1) IN GENERAL.—^As provided in the Compact, the Secretary 
shall allocate 30,000 acre-feet per year of stored water in Big 
Horn Reservoir, Yellowtail Unit, Lower Bighorn Division, Pick-
Sloan Missouri Basin Program, Montana, measured at the out-
let works of the dam or at the diversion point from the Res-
ervoir, for use or disposition by the Tribe for any purpose. 
(2) PRIOR RESERVED RIGHTS.—This allocation shall be sub-
ject to the prior reserved water rights, if any, of any Indian 
tribe, or of persons claiming water through that tribe, to the 
water allocated in paragraph (1). 
(b) PAYMENTS BY TRIBE.— 
(1) IN GENERAL.—The Tribe shall not be required to make 
payments to the United States for the portion of the tribal 
water right stored in or used from the Big Horn Reservoir 
except for each acre-foot of stored water used or sold for munici-
pal or industrial purposes. The Tribe shall pay annually to 
the United States an amount to cover the proportionate share 
of the— 
(A) annual operation, maintenance and replacement 
costs for the Yellowtail Unit allocable to the amount of 
water for municipal and industrial purposes used or sold 
by the Tribe; and 
(B) capital costs with appropriate interest for the 
Yellowtail Unit allocable to the amount of water for munici-
pal and industrial purposes used or sold by the Tribe. 
PUBLIC LAW 102-374—SEPT. 30, 1992 
106 STAT. 1191 
(2) ADJUSTMENT OF PAYMENTS.—The annual payments 
shall be reviewed and adjusted, as appropriate, to reflect the 
actual operation, maintenance, and replacement costs, £ind the 
actual capital costs, for the Yellowtail Unit. 
(c) USE AND SALE OF WATER.— 
(1) IN GENERAL.—Except for payments required to be made 
to the United States pursuant to subsection (b), the Tribe 
shall— 
(A) set such rates as it considers proper for its use 
or sale of stored water; and 
(B) retain all revenues from its use or sale of the 
stored water. 
(2) HYDROPOWER GENERATION.—^The United States shall 
retain the right to use any and all water stored in the Big 
Horn Reservoir for hydropower generation. 
(d) AGREEMENT WITH TRIBE.—^The Secretary shall enter into 
an agreement with the Tribe providing— 
(1) for the Tribe's use or sale of water stored in the Big 
Horn Reservoir subject to the terms and conditions of the 
Compact; and 
(2) for the collection and disposition of revenues in connec-
tion with water stored in the Big Horn Reservoir that is made 
available to the Tribe. 
(e) MORATORIUM ON WATER MARKETING.—^Notwithstanding any 
provision of this Act or the Compact, no portion of the allocation 
described in paragraph (1) of subsection (a) shall be sold or leased 
by the Tribe for a period of 10 years following the date on which 
the Compact becomes effective pursuant to Article V(A)(1) of the 
Compact or for a period of 10 years following any earlier date 
on which the allocation may become available to the Tribe, unless 
the Crow Tribe and the Northern Cheyenne Tribe agree otherwise. 
(f) LIMITATION ON WATER MARKETING.—The Secretary may 
enter into contracts for the sale or lease of water to which the 
United States holds legal title and which is stored in the Big 
Horn Reservoir, except that with respect to any such contract— 
(1) the Secretary provides notice to the Northern Cheyenne 
Tribe and the Crow Tribe of his intent to enter into a contract 
at least 120 days in advance of entering into such contract; 
(2) the terms of the contract for sale or lease of water 
provide that the contract will not exceed a 2-year term, with 
a right of renewal following a 120-day notice period to the 
Northern Cheyenne Tribe and Crow Tribe; and 
(3) the terms of the contract for sale or lease of water 
contain a provision that makes clear that the contract is subject 
to alteration or termination by the United States pending the 
resolution of claims to water by the Crow Tribe. 
SEC. 10. TONGUE RIVER DAM PROJECT. 
(a) IN GENERAL.—The Secretary shall enter into a cooperative Contracts, 
agreement with the State of Montana for the planning, design, 
and construction of the Tongue River Dam Project in accordance 
with the provisions of the April 17, 1991, letter of agreement 
signed by the Northern Cheyenne Tribe Federal Negotiating Team 
and the Montana Department of Natural Resources and Con-
servation. The Secretary shall also enter into a cooperative agree-
ment with the State of Montana for compliance with the National 
106 STAT. 1192 
PUBLIC LAW 102-374—SEPT. 30, 1992 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) on the 
Tongue River Dam Project. 
(b) OWNERSHIP.—Notwithstanding Federal participation in the 
Tongue River Dam Project, the Tongue River Dam shall remain 
in the ownership of the State of Montana. 
(c) STATE OPERATION OF RESERVOIR.—Except as otherwise pro-
vided in the Compact, nothing in this Act shall affect the State's 
operation of the Tongue River Reservoir to fulfill State water con-
tracts. 
(d) CONGRESSIONAL INTENT.—Nothing in this Act is intended 
to subject holders of State water contracts from the Tongue River 
Reservoir who do not have a contract for Federal reclamation stor-
age to the provisions of the Reclamation Reform Act of 1982 (43 
U.S.C. 390aa et seq.). 
(e) LAND TRANSFER.— 
(1) Notwithstanding any other provisions of law, the 
Bureau of Land Management shall transfer to the Bureau 
of Indian Affairs in trust for the Northern Cheyenne Tribe 
the following described land: 
T. 8 S., R. 40 E., P.M.M. 
Sec. 26, Ny2SWy4 
Sec. 27,Ny2SEV4 
T. 8 S., R. 40 E., P.M.M. 
Sec. 23, SWViNEVi, NV2SEy4 
Sec. 24, NWy4SWy4. 
(2) Nothing in this section is intended to address the juris-
diction of the Tribe or the State of Montana over the property 
being transferred. 
(3) This transfer shall not be construed as creating a Fed-
eral reserved water right. 
(f) PAYMENT OF THE TRIBE'S SHARE.—^The Secretary, acting 
through the Bureau of Indian Affairs, shall continue to pay annually 
to the State of Montana on a nonreimbursable basis an amount 
to cover the proportionate share of the annual operation, mainte-
nance and replacement costs for the Tongue River Dam allocable 
to the Tribe's stored water in the reservoir. 
(g) EMPLOYMENT PREFERENCE.—Notwithstanding any other 
provision of law, the State shall require in all contracts and sub-
contracts relating to construction of the Tongue River Dam Project, 
a provision that the contractor and its subcontractors shall provide 
Ck)ntracts. 
a hiring preference to Northern Cheyenne tribal members. The 
State and the Tribe shall enter into an agreement setting forth 
the manner in which the preference will be implemented £ind 
enforced. 
SEC. 11. MISCELLANEOUS PROVISIONS. 
(a) WAIVER OF SOVEREIGN IMMUNITY.—Notwithstanding 
the 
provisions of Article IV, Section G. of the Compact, the United 
States shall not be deemed to have waived its immunity from 
suit except to the extent provided in subsections (a), (b), and (c) 
of section 208 of the Act of July 10,1952 (43 U.S.C. 666). 
PUBLIC LAW 102-374—SEPT. 30, 1992 
106 STAT. 1193 
(b) EFFECT ON YELLOWSTONE RIVER COMPACT.—^Nothing in this 
Act shall be construed to alter or amend any provision of the 
Yellowstone River Compact, as consented to in the Act entitled 
"An Act granting the consent of Congress to a Compact entered 
into by the States of Montana, North Dakota, and Wyoming relating 
to the waters of the Yellowstone River", approved October 30, 
1951 (65 Stat. 663). 
(c) EFFECT ON RIGHTS OF OTHER TRIBES.—Nothing in this Act 
is intended to quantify or otherwise adversely affect the land and 
water rights, or claims or entitlements to land or water, of an 
Indian Tribe other than the Northern Cheyenne Tribe. 
(d) ENVIRONMENTAL CoMPLLysfCE.—In implementing the Com-
pact, the Secretary shall comply with all aspects of the National 
Environmental Policy Act of 1969 (42 U.S.C. 433-4335), and the 
42 USC 4321-
Endangered Species Act (16 U.S.C. 1531 et seq.), and other ^335. 
applicable environmental Acts and regulations. 
(e) EXECUTION OF COMPACT.—Execution of the Compact by 
the Secretary as provided for in section 4 shall not constitute 
major Federal action under the National Environmental Policy Act 
(42 U.S.C. 4321 et seq.). The Secretary is directed to carry out 
all necessary environmental compliance during the implementation 
phase of this settlement. 
(f) 
BUREAU 
OF RECLAMATION 
DESIGNATED 
AS THE 
LEAD 
AGENCY.—With respect to the Tongue River Dam Project and uses 
of the Tribe's Big Horn Reservoir storage allocation, the Bureau 
of Reclamation is designated as the lead agency in regard to 
environmental compliance, and shall coordinate and cooperate with 
the other affected Federal agencies as required under applicable 
environmental laws. 
(g) BUREAU OF INDIAN AFFAIRS DESIGNATED AS THE LEAD 
AGENCY.—^With respect to all other provisions of the Compact, 
the Bureau of Indian Affairs is designated as the lead agency 
in regard to environmental compliance, and shall coordinate and 
cooperate with the other affected Federal agencies as required under 
applicable environmental laws. 
SEC. 12. APPLICATION OF PROVISIONS REGARDING ALLOCATION OF 
WATER RESOURCES. 
(a) FINDING.—Congress finds that the allocation of water 
resources to the Tribe under this Act is uniquely suited to the 
geographic, social, and economic characteristics of the area and 
situation involved. 
(b) APPLICATION,—The provisions of this Act regarding the 
allocation of water resources to the Tribe shall not be construed 
to be applied to nor be precedent for £iny other Indian water 
right claims. 
SEC. 
1
3
. 
EFFECTIVE 
DATE 
OF 
SETTLEMENT. 
The settlement contained in this Act shall not become effective 
if a tribal referendum on the settlement is requested pursuant 
to the Northern Cheyenne Constitution within 60 days following 
the date of enactment of this Act, and the settlement fails to 
be approved in such referendum held within 120 days following 
the date of enactment of this Act. If the settlement does not become 
effective pursuant to this section, the United States (including 
the Secretary and all other officers), the State of Montana, and 
the Tribe are relieved of all rights, entitlements, duties, responsibil-
ities and authorities conferred, imposed or created by this Act. 
106 STAT. 1194 
PUBLIC LAW 102-374—SEPT. 30, 1992 
If a referendum is not requested within such 60-day period, the 
settlement shall take effect upon the date next following the expira-
tion of such 60-day period. If a referendum is requested within 
such 60-day period, and the settlement is approved in a referendum 
held within 120 days following the date of enactment of this Act, 
the settlement shall take effect on the date next following the 
date of such approval. 
Approved September 30, 1992. 
LEGISLATIVE HISTORY—S. 1607: 
HOUSE REPORTS: No. 102-894 (Comm. on Interior and Insular Affairs). 
SENATE REPORTS: No. 102-347 (Select Comm. on Indian Affairs). 
CONGRESSIONAL RECORD, Vol. 138 (1992): 
Aug. 7, considered and passed Senate. 
Sept. 22, considered and passed House.