Colorado River Water leases and exchanges; Uses

(a) In general Subject to approval by the Secretary— (1) except as prohibited in subsections (g)(1)(F) and (h)(1)(E) of section 6, the Navajo Nation may enter into leases, or options to lease, or exchanges, or options to exchange, Navajo Nation Upper Basin Colorado River Water, Navajo Nation Cibola Water, and Navajo Nation Fourth Priority Water, for Use and storage in the State, in accordance with the Settlement Agreement and all applicable Federal and State laws governing the transfer of Colorado River Water entitlements within the State; and (2) the Hopi Tribe may enter into leases, or options to lease, or exchanges, or options to exchange, Hopi Tribe Upper Basin Colorado River Water and Hopi Tribe Cibola Water for Use and storage in the State, in accordance with the Settlement Agreement and all applicable Federal and State laws governing the transfer of Colorado River Water entitlements within the State. (b) Terms of leases and exchanges (1) On-reservation leasing (A) In general The Navajo Nation may lease the Navajo Nation Upper Basin Colorado River Water, the Navajo Nation Cibola Water, and the Navajo Nation Fourth Priority Water for Use or storage on the Navajo Reservation and the Hopi Tribe may lease Hopi Tribe Upper Basin Colorado River Water and Hopi Tribe Cibola Water for Use or storage on the Hopi Reservation. (B) Requirements A lease or option to lease under subparagraph (A) shall be subject to— (i) the leasing regulations of the Navajo Nation or Hopi Tribe, as applicable; and (ii) subsections (a) and (e) of the first section of the Act of August 9, 1955 (69 Stat. 539, chapter 615; 25 U.S.C. 415) (commonly known as the Long-Term Leasing Act). (2) Exchanges and Off-Reservation leasing (A) Navajo nation leasing (i) In general Subject to approval by the Secretary for an Off-Reservation lease, the Navajo Nation may lease— (I) Navajo Nation Cibola Water and Navajo Nation Fourth Priority Water for Use or storage off of the Navajo Reservation anywhere within the Lower Basin within the State; and (II) except as provided in subsections (g)(1)(F) and (h)(1)(E) of section 6 and the NAIWRSA System Conservation Program agreements described in subsection (c)(4)(C)(i)(II) of that section, Navajo Nation Upper Basin Colorado River Water anywhere in the State in accordance with the Settlement Agreement and all applicable Federal and State laws governing the transfer of Navajo Nation Upper Basin Colorado River Water within the State. (ii) Limitation No action by the Navajo Nation under clause (i)(II) relating to NAIWRSA System Conservation Programs or leasing shall modify the obligations of the Navajo Nation to deliver up to 350 AFY to the San Juan Southern Paiute Tribe pursuant to paragraph 6.3.1 of the Settlement Agreement. (B) Hopi tribe leasing Subject to approval by the Secretary for an Off-Reservation lease, the Hopi Tribe may lease— (i) Hopi Tribe Cibola Water for Use or storage off of the Hopi Reservation anywhere within the Lower Basin within the State; and (ii) except as provided in the NAIWRSA System Conservation Program agreement described in section 6(c)(4)(C)(i)(II), Hopi Tribe Upper Basin Colorado River Water for Use or storage off of the Hopi Reservation anywhere in the State in accordance with the Settlement Agreement and all applicable Federal and State laws governing the transfer of Hopi Tribe Upper Basin Colorado River Water within the State. (C) Term of leases and exchanges (i) Leases (I) 100-year term A contract to lease and an option to lease off of the Reservation under subparagraph (A)(i)(I) or (B)(i), as applicable, shall be for a term not to exceed 100 years. (II) 40-year term A contract to lease and an option to lease off of the Reservation under subparagraph (A)(i)(II) or (B)(ii), as applicable, shall be for a term not to exceed 40 years. (ii) Exchanges An exchange or option to exchange shall be for the term provided for in the exchange or option, as applicable. (D) Lease period (i) No limitations There shall be no limitations on the Lease Period for— (I) Navajo Nation Cibola Water, Navajo Nation Fourth Priority Water, and Hopi Tribe Cibola Water that is diverted from the Colorado River downstream of Lee Ferry; and (II) Navajo Nation Upper Basin Colorado River Water and Hopi Tribe Upper Basin Colorado River Water leased for Use on the Navajo Reservation and Hopi Reservation, as applicable. (ii) Other lease periods The Navajo Nation and the Hopi Tribe are authorized to lease Navajo Nation Upper Basin Colorado River Water and Hopi Tribe Upper Basin Colorado River Water in the Lower Basin in the State in accordance with the following: (I) During the first 20 years after the Enforceability Date, the Navajo Nation may lease up to 16,214.55 AFY and the Hopi Tribe may lease up to 835.45 AFY for an annual cumulative total of 17,050 AFY in the Lower Basin. (II) Notwithstanding subclause (I), retaining the annual cumulative total of 17,050 AFY leased in the Lower Basin, the ability of the Navajo Nation to lease Navajo Nation Upper Basin Colorado River Water shall be increased by, and the ability of the Hopi Tribe to lease Hopi Tribe Upper Basin Colorado River Water shall be reduced by, an amount equal to the additional System Eligible Conservation Water that the Navajo Nation delivers to the Secretary in accordance with section 6(c)(4)(C)(i)(III)(bb). (III) Beginning 20 years after the Enforceability Date, the Navajo Nation and the Hopi Tribe may lease its available Navajo Nation Upper Basin Colorado River Water and Hopi Tribe Upper Basin Colorado River Water until such time as the iiná bá – pa tuwaqat’si pipeline has been completed and all the projects described in the Navajo Nation Water Projects Trust Fund and the Hopi Tribe Groundwater Projects Trust Fund, as the projects are further described in paragraphs 12.2.1 and 12.3.1 of the Settlement Agreement, have been completed, as determined by the Navajo Nation and the Hopi Tribe. (IV) Once all the projects described in subclause (III) have been completed for their respective projects, as determined by the Navajo Nation and the Hopi Tribe, the Navajo Nation and the Hopi Tribe shall determine whether revenues from leasing are necessary to meet the OM&R costs of— (aa) the projects described in paragraphs 12.2.1 and 12.3.1 of the Settlement Agreement; and (bb) the iiná bá – pa tuwaqat’si pipeline. (V) If the Navajo Nation and the Hopi Tribe continue to require revenues from leasing to meet the OM&R expenses described in subclause (IV), the Navajo Nation and the Hopi Tribe may continue to lease the Navajo Nation Upper Basin Colorado River Water and Hopi Tribe Upper Basin Colorado River Water to meet those OM&R expenses. (iii) Savings provision Nothing in this subparagraph requires the early termination of any lease entered into during the Lease Period and authorized by this Act at the time the lease was executed. (3) Requirements for all contracts to lease and contracts to exchange All contracts to lease or exchange Navajo Nation Upper Basin Colorado River Water, Navajo Nation Cibola Water, Navajo Nation Fourth Priority Water, Hopi Tribe Upper Basin Colorado River Water, and Hopi Tribe Cibola Water shall— (A) identify the places of Use of the water, the purpose of the Uses of the water during the term of the contract, the mechanisms for delivery of the water, and each point of diversion under the contract; and (B) provide that the water received from the Navajo Nation or the Hopi Tribe, as applicable, shall be used in accordance with applicable law. (4) No conflict with settlement agreement or this act A contract to lease or exchange Navajo Nation Upper Basin Colorado River Water, Navajo Nation Cibola Water, Navajo Nation Fourth Priority Water, Hopi Tribe Upper Basin Colorado River Water, or Hopi Tribe Cibola Water shall not conflict with the Settlement Agreement or this Act. (c) Prohibition on permanent alienation No Navajo Nation Upper Basin Colorado River Water, Navajo Nation Cibola Water, Navajo Nation Fourth Priority Water, Hopi Tribe Upper Basin Colorado River Water, or Hopi Tribe Cibola Water may be permanently alienated. (d) Entitlement To lease and exchange monies (1) Entitlement The Navajo Nation or the Hopi Tribe, as applicable, shall be entitled to all consideration due to the Navajo Nation or Hopi Tribe under any lease, option to lease, exchange, or option to exchange Navajo Nation Upper Basin Colorado River Water, Navajo Nation Cibola Water, Navajo Nation Fourth Priority Water, Hopi Tribe Upper Basin Colorado River Water, or Hopi Tribe Cibola Water entered into by the Navajo Nation or the Hopi Tribe. (2) Exclusion The United States shall not, in any capacity, be entitled to the consideration described in paragraph (1). (3) Obligation of the united states The United States shall not, in any capacity, have any trust or other obligation to monitor, administer, or account for, in any manner, any funds received by the Navajo Nation or the Hopi Tribe as consideration under any lease, option to lease, exchange, or option to exchange Navajo Nation Upper Basin Colorado River Water, Navajo Nation Cibola Water, Navajo Nation Fourth Priority Water, Hopi Tribe Upper Basin Colorado River Water, and Hopi Tribe Cibola Water entered into by the Navajo Nation or the Hopi Tribe. (e) Delivery of colorado river water to lessees All lessees of Navajo Nation Upper Basin Colorado River Water, Navajo Nation Cibola Water, Navajo Nation Fourth Priority Water, Hopi Tribe Upper Basin Colorado River Water, and Hopi Tribe Cibola Water shall pay all OM&R charges, all energy charges, and all other applicable charges associated with the delivery of the leased water. (f) Delivery of colorado river water through the CAP system (1) C AWCD approval The Navajo Nation, the Hopi Tribe, or any person who leases Navajo Nation Upper Basin Colorado River Water, Navajo Nation Cibola Water, Navajo Nation Fourth Priority Water, Hopi Tribe Upper Basin Colorado River Water, and Hopi Tribe Cibola Water under subsection (a) may transport that Navajo Nation Upper Basin Colorado River Water, Navajo Nation Cibola Water, Navajo Nation Fourth Priority Water, Hopi Tribe Upper Basin Colorado River Water, or Hopi Tribe Cibola Water, as applicable, through the CAP system in accordance with all laws of the United States and the agreements between the United States and CAWCD governing the use of the CAP system to transport water other than CAP water, including payment of applicable charges. (2) Lessee responsibility for charges Any lease or option to lease providing for the temporary delivery of Navajo Nation Upper Basin Colorado River Water, Navajo Nation Cibola Water, Navajo Nation Fourth Priority Water, Hopi Tribe Upper Basin Colorado River Water, and Hopi Tribe Cibola Water through the CAP system shall require the lessee to pay the CAP operating agency all CAP fixed OM&R charges and all CAP pumping energy charges associated with the delivery of the leased water, and other applicable charges. (3) No responsibility for payment The Navajo Nation, the Hopi Tribe, and the United States acting in any capacity shall not be responsible for the payment of any charges associated with the delivery of Colorado River Water leased to others. (4) Payment in advance No leased Navajo Nation Upper Basin Colorado River Water, Navajo Nation Cibola Water, Navajo Nation Fourth Priority Water, Hopi Tribe Upper Basin Colorado River Water, or Hopi Tribe Cibola Water shall be delivered through the CAP system unless the CAP fixed OM&R charges, the CAP pumping energy charges, and other applicable charges associated with the delivery of that Navajo Nation Upper Basin Colorado River Water, Navajo Nation Cibola Water, Navajo Nation Fourth Priority Water, Hopi Tribe Upper Basin Colorado River Water, or Hopi Tribe Cibola Water, as applicable, have been paid in advance. (5) Calculation The charges for delivery of Navajo Nation Upper Basin Colorado River Water, Navajo Nation Cibola Water, Navajo Nation Fourth Priority Water, Hopi Tribe Upper Basin Colorado River Water, and Hopi Tribe Cibola Water delivered through the CAP system pursuant to a lease shall be calculated in accordance with the agreements between the United States and CAWCD governing the use of the CAP system to transport water other than CAP water.