Sec. 7. Colorado River Water leases and exchanges; Uses
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Subject to approval by the Secretary— 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 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.
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. A lease or option to lease under subparagraph
(A)shall be subject to— the leasing regulations of the Navajo Nation or Hopi Tribe, as applicable; and 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 ). Subject to approval by the Secretary for an off-Reservation lease, the Navajo Nation may lease Navajo Nation Upper Basin Colorado River Water, Navajo Nation Cibola Water, and Navajo Nation Fourth Priority Water for Use or storage off of the Navajo Reservation anywhere within the State, in accordance with the Settlement Agreement and all applicable Federal and State laws governing the transfer of Colorado River Water within the State. Subject to approval by the Secretary for an off-Reservation lease, the Hopi Tribe may lease Hopi Tribe Upper Basin Colorado River Water and Hopi Tribe Cibola Water for Use or storage off of the Hopi Reservation anywhere within the State, in accordance with the Settlement Agreement and all applicable Federal and State laws governing the transfer of Colorado River Water within the State. A contract to lease and an option to lease off of the Reservation under subparagraph
(A)or (B), as applicable, shall be for a term not to exceed 100 years. An exchange or option to exchange shall be for the term provided for in the exchange or option, as applicable. The Navajo Nation and the Hopi Tribe may, with the approval of the Secretary, renegotiate any lease described in subparagraph
(A)or (B), as applicable, at any time during the term of that lease, subject to the condition that the term of the renegotiated lease off of the Reservation may not exceed 100 years. 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 Colorado River Water, and Hopi Tribe Cibola Water shall— 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 provide that the water received from the Navajo Nation or the Hopi Tribe, as applicable, shall be used in accordance with applicable law. 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. 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. 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. The United States shall not, in any capacity, be entitled to the consideration described in paragraph (1). 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. 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. 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, and other applicable 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. 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. 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. 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.
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